FX.co ★ Silver Slides Below $50

Silver has dipped below the $50-per-ounce mark, influenced by a strengthening US dollar and diminishing expectations of a Federal Reserve interest rate reduction next month. Market participants are turning their attention to several crucial US economic data releases, which have resumed following the conclusion of the country's longest government shutdown. Notably, Thursday's release of the September jobs report will provide more detailed insights into the state of the labor market. Currently, the market is assigning approximately a 40% probability to another rate cut by the Federal Reserve in December, a significant drop from nearly 100% immediately following the September meeting. This shift is due to the recent absence of government data and growing disagreements among members of the Federal Open Market Committee (FOMC). On Monday, Federal Reserve Vice Chair Philip Jefferson emphasized the necessity for the central bank to exercise caution regarding future policy easing. Nonetheless, factors affecting supply continue to lend some support to silver. The physical demand in India is experiencing an uptick due to the country’s wedding season, and there are added concerns about potential US tariffs on silver, contributing to a complex outlook for the metal.