FX.co ★ Silver Soars to Three-Week High

On Monday, silver prices surged by 3%, reaching $50 per ounce, marking the highest level since October 20. This increase reflects growing anticipation of a potential Federal Reserve interest rate cut in December, spurred by a series of weak economic reports from the United States. In November, US consumer sentiment plunged to its second-lowest point ever recorded, amidst rising worries over the ongoing government shutdown—now the longest in US history. Furthermore, the economy saw a decline in employment numbers for October, particularly in the government and retail sectors, with layoffs hitting a two-decade peak. Market analysts are now estimating nearly a 70% likelihood of a rate cut in December. Concurrently, the US Senate made headway by approving the initial phase of legislation aimed at ending the shutdown, surpassing the 60-vote threshold by a narrow margin. Notably, eight Democratic senators joined ranks with their Republican counterparts to support the bill, which seeks to secure funding for various departments, including Agriculture, Veterans Affairs, and Congress, along with several other agencies.