FX.co ★ Silver Pulls Back on Profit-Taking

Silver experienced a decline of over 1% to $57 per ounce on Tuesday, as investors opted to take profits following its recent peak at an all-time high. This decrease comes after a six-session surge that saw silver prices more than double in 2025, rising from last year's 52-week low of approximately $28.30. Nonetheless, upward momentum appears to persist due to constrained physical supply, robust industrial demand, and the anticipation of a reduction in US interest rates. Current market sentiment indicates an 88% probability of a 25 basis point rate cut at the Federal Reserve's upcoming meeting, driven by weaker US economic indicators and dovish commentary from multiple Fed officials. On Monday, data showed that US manufacturing contracted for the ninth consecutive month in November, heightening the pressure on the Fed to ease monetary policy. Investors are now looking forward to Federal Reserve Chair Jerome Powell’s upcoming remarks for further insight into the direction of future interest rates. Additionally, later in the week, traders will be keeping an eye on the November ADP employment report and the delayed September Personal Consumption Expenditures (PCE) data.