FX.co ★ Silver Steadies After Volatile Week

Silver held steady at approximately $48.80 per ounce on Monday following a tumultuous previous week, as investors considered the Federal Reserve's policy outlook alongside the easing of trade tensions between the US and China. The Federal Reserve announced a 25 basis point rate cut last week, a move largely anticipated by the market. However, Chairman Powell emphasized that a similar action is not assured for December. Market participants are now focusing on pivotal US economic data, such as the ADP employment and ISM PMI reports, for additional direction. Meanwhile, the improvement in trade relations has diminished the demand for precious metals as safe-haven assets. Over the weekend, the White House stated that China would halt additional export restrictions on rare earth elements and discontinue investigations into US semiconductor companies, in return for the US suspending certain tariffs and abandoning a planned 100% tariff on Chinese goods. In the previous month, silver reached record highs due to a short squeeze and liquidity issues in London before it retracted as investors took profits.