Silver Steady Ahead of Fed Rate Call
Silver prices steadied near $54 an ounce on Tuesday after recently hitting multi-month lows, as falling oil prices and bargain-hunting ahead of the Federal Reserve’s policy decision offered some support. Crude prices fell for a second consecutive session amid renewed diplomatic efforts to defuse US-Iran tensions, helping ease near-term inflation concerns. However, energy prices remained elevated, keeping inflation risks in focus and sustaining expectations of further monetary tightening, which could weigh on non-yielding precious metals. The Federal Reserve is widely expected to leave interest rates unchanged this week, with markets focused on policymakers’ forward guidance for clues about the rate outlook. Markets are pricing in a roughly 82% chance of a rate hike in December, according to the CME FedWatch Tool. Investors will also watch upcoming US GDP and PCE price index data for further insight into the economic outlook and the Fed’s policy path.
Silver prices steadied near $54 an ounce on Tuesday after recently hitting multi-month lows, as falling oil prices and bargain-hunting ahead of the Federal Reserve’s policy decision offered some support. Crude prices fell for a second consecutive session amid renewed diplomatic efforts to defuse US-Iran tensions, helping ease near-term inflation concerns. However, energy prices remained elevated, keeping inflation risks in focus and sustaining expectations of further monetary tightening, which could weigh on non-yielding precious metals.
The Federal Reserve is widely expected to leave interest rates unchanged this week, with markets focused on policymakers’ forward guidance for clues about the rate outlook. Markets are pricing in a roughly 82% chance of a rate hike in December, according to the CME FedWatch Tool. Investors will also watch upcoming US GDP and PCE price index data for further insight into the economic outlook and the Fed’s policy path.