FX.co ★ Silver Stabilizes After Two-Day Drop

Silver remained steady around $51 per ounce on Monday after experiencing a significant decline over the prior two days. This comes as investors eagerly await a series of U.S. economic reports set to be released following the reopening of the government. These releases could offer clarity on the Federal Reserve’s future policy direction. Last week, precious metals underwent substantial selling pressure, driven by a recalibration of trader expectations regarding potential U.S. interest rate cuts. Currently, the probability of a 25 basis points reduction by the Federal Reserve next month has diminished to 46%, a marked decrease from about 88% the previous month. Market participants are now focusing on the forthcoming September jobs report scheduled for Thursday, while also anticipating updates on additional economic data releases. In another development, the U.S. Department of the Interior has newly classified silver, copper, and metallurgical coal as "critical minerals." This designation highlights their significance to economic and national security and opens up the possibility for Section 232 investigations and trade limitations, similar to those imposed on copper earlier this year.