Silver Prices Fall More Than 2%

Silver prices tumbled below $52 an ounce on Tuesday as hotter-than-expected US inflation figures and hawkish comments from Federal Reserve Governor Christopher Waller strengthened expectations of further monetary tightening in December, including the possibility of a 50-basis-point hike. US headline inflation slowed to 0.4% month-on-month in October 2026, from 0.6% in September, but came in above forecasts of 0.3%. Core inflation also remained elevated at 0.3% for a third consecutive month, exceeding expectations of 0.2% and highlighting persistent underlying price pressures. Waller signaled support for a December rate increase, adding that he would back a 50-basis-point hike if inflation continued to accelerate. Markets are now pricing in approximately 28 basis points of tightening, fully reflecting a quarter-point increase while leaving room for a larger move.

Silver prices edged lower toward $53 an ounce on Tuesday, giving back part of the previous session’s gains as investors awaited a key US inflation report that could shape expectations for Federal Reserve monetary policy. Markets are now pricing in an 84% probability of a Fed rate hike in December as policymakers continue to face persistent inflationary pressures, up from roughly 74% a week earlier. Higher interest rates raise the opportunity cost of holding non-yielding assets, making precious metals less attractive to investors. Meanwhile, silver gained nearly 3% on Monday as oil prices plunged amid growing optimism over a potential peace agreement between the US and Iran. President Donald Trump expressed confidence that the conflict in Iran was approaching an end following discussions with Qatar’s prime minister. Lower crude prices could help ease inflationary pressures, potentially reducing the need for further monetary policy tightening.

Silver climbed more than 1% to $52.7 an ounce on Monday, supported by lower oil prices that eased inflation concerns, as investors awaited US CPI and PPI data due later this week for further clues on the Federal Reserve’s monetary policy outlook. The advance follows a 6% rally last week, after Democrats won control of both chambers of Congress in the US midterm elections, raising hopes for a potential end to the US-Israeli war with Iran. Oil prices fell sharply on Monday after US President Donald Trump downplayed the likelihood of further strikes against Iran. These gains came despite a stronger-than-expected US employment report released on Friday, which reinforced expectations that the Federal Reserve could keep interest rates higher for longer, supporting the US dollar and Treasury yields. Markets currently assign an 81% probability to a Fed rate hike in December, according to the CME FedWatch Tool.