FX.co ★ Silver Steadies on Fed Rate Cut Bets

Silver steadied at approximately $50 per ounce on Monday, pausing its recent decline as remarks from a prominent US Federal Reserve official fueled anticipations of an interest rate cut next month. John Williams, President of the New York Fed, indicated on Friday that a short-term rate cut remains on the table, citing labor market weaknesses as a more significant concern than rising inflation. The probability of a 25 basis point rate reduction in December has risen to around 69%, compared to 44% a week earlier. However, there remains a division among policymakers, with Boston Fed President Susan Collins expressing indecision regarding policy adjustments. Investors are now turning their attention to crucial US economic indicators due this week, such as retail sales, producer inflation, and jobless claims, to provide further insights. Silver has been approaching record highs since October, but the ambiguity surrounding US monetary policy and prevalent profit-taking has exerted pressure on prices.