FX.co ★ Silver Climbs on Dovish Fed Bets

Silver prices climbed to nearly $52 per ounce on Wednesday, reaching their highest level in almost two weeks. This increase was driven by disappointing US economic data, which bolstered expectations for a Federal Reserve interest rate cut in December. Specifically, September's retail sales figures fell short of forecasts, and November witnessed a significant drop in consumer confidence, both indicative of a cooling in consumer spending following a period of robust demand. Additionally, the labor market is showing signs of weakening, with ADP revealing that private employers have been cutting an average of 13,500 jobs weekly in the four weeks leading up to November 8—a stark decline from previous levels. Consequently, market expectations for a 25 basis point rate cut by the Fed next month have surged to approximately 84%, up from 50% the previous week. Furthermore, reports suggest that Kevin Hassett, Director of the White House National Economic Council and an advocate for lower rates than those currently in place, is a leading candidate for the next Fed chair.