Silver Holds Near Lows as Markets Await Fed Decision

Silver fell below $53 an ounce on Tuesday, hitting near one-year lows as the dollar strengthened ahead of key central bank policy decisions this week, weighing on the precious metal. Renewed investor enthusiasm for the AI trade following Anthropic’s IPO filing also bolstered the dollar, reflecting the sector’s contribution to US economic growth. Meanwhile, oil prices declined for a second consecutive session amid diplomatic efforts to ease tensions in the Middle East, although prices remained elevated, keeping inflation concerns in focus and reinforcing expectations of further monetary tightening. The US Federal Reserve is widely expected to hold interest rates steady this week, with investors closely monitoring policymakers’ forward guidance for indications of a possible rate hike in December. Market participants will also scrutinize upcoming US GDP and PCE price index data for further clues about the economic outlook and the Fed’s future policy direction.

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 were little changed around $54 an ounce on Monday, hovering near their lowest levels since November 2025, as investors assessed easing oil prices ahead of this week’s central bank meetings. Oil retreated from last week’s rally but remained near six-month highs amid hopes of easing US-Iran tensions, while potential supply disruptions continued to pose inflation risks. The Federal Reserve is widely expected to hold rates steady on Wednesday, although markets now assign more than an 80% probability to another hike in December, according to the CME FedWatch Tool. Investors are also awaiting Thursday’s US PCE inflation data for further clues on monetary policy, with attention turning to the November 3 US midterm elections. Elsewhere, the European Central Bank and Bank of Japan are expected to leave rates unchanged, while the Bank of Canada is widely anticipated to deliver its first rate hike since 2023.