FX.co ★ Silver Holds at 3-Week High

Silver prices dipped to approximately $51 per ounce on Wednesday, remaining close to recent three-week highs. This movement is primarily driven by emerging signs of weakness in the US labor market, which have heightened expectations for an imminent rate cut by the Federal Reserve. According to ADP data, US private employers have been reducing their workforce by an average of 11,250 jobs per week over the four weeks ending October 25, suggesting a challenging employment scenario in the absence of official statistics. Consequently, markets are currently factoring in a 68% probability of a 25 basis points rate reduction in December, up from about 62% the previous day. Adding to this sentiment, earlier in the week, Fed Governor Stephen Miran advocated for a more significant half-point rate reduction, citing declining inflation and increasing unemployment. Simultaneously, there is growing optimism that the record-long government shutdown might conclude soon, with the Republican-controlled...