FX.co ★ Silver Rallies to 3-Week High

Silver prices experienced a significant increase of over 5%, reaching approximately $51 per ounce this week. This rise is attributed to the anticipation of an imminent Federal Reserve interest rate decrease, prompted by indications of economic fragility in the United States. Recent economic data highlighted job losses in October, notably within the government and retail sectors, alongside a decline in consumer sentiment to its lowest in 3½ years by early November. Market participants are currently factoring in a roughly 64% probability of a 25-basis-point rate cut by the Federal Reserve in December. Additionally, Fed Governor Stephen Miran has suggested a more substantial reduction of half a percentage point, in light of decreasing inflation and increasing unemployment. Concurrently, the US Senate has advanced legislation to reopen the federal government following a 40-day shutdown. This move could potentially lessen the appeal of precious metals as a safe-haven asset. However, the proposed legislation is still pending approval from the US House of Representatives before it can proceed to President Donald Trump for ratification.