Silver prices declined in the European market on Tuesday, retreating from the all-time highs recorded at the end of last week, amid active correction and profit-taking operations. Further losses were limited by the continued weakness of the US dollar against a basket of major global currencies.

Markets are awaiting the release of key US labor market data later today, particularly the October jobs report, which had been delayed due to the US government shutdown. The data are expected to provide strong signals about the Federal Reserve’s monetary policy path in 2026.

Price Overview

• Silver prices today: Silver fell by 3.0% to $62.17, from an opening level of $64.09, after recording an intraday high of $64.15.

• At Monday’s settlement, silver prices rose by 3.5%, resuming gains that had paused on Friday after reaching an all-time high of $64.66 per ounce.

US Dollar

The US dollar index slipped by around 0.1% on Tuesday, extending losses for a second consecutive session and nearing its lowest level in two months, reflecting continued weakness in the US currency against a basket of global currencies.

The dollar has remained under negative pressure since last week’s Federal Reserve meeting, as the outcome was less hawkish than markets had expected, reviving bets on the continuation of the Fed’s interest rate cutting cycle in 2026.

US Interest Rates

• According to the CME FedWatch Tool, pricing for keeping US interest rates unchanged at the January 2026 meeting currently stands at 73%, while the probability of a 25-basis-point rate cut is priced at 27%.

• Investors are currently pricing in two US rate cuts over the course of next year, while Federal Reserve projections point to a single 25-basis-point cut.

• To reassess these expectations, investors are closely monitoring further US economic data, in addition to comments from Federal Reserve officials.

• The US October jobs report is due later today and is expected to provide strong clues about the pace of growth in the world’s largest economy during the fourth quarter, which was heavily impacted by the longest government shutdown in US history.

Silver Outlook

At Economies.com, we expect that if US data come in less aggressive than market expectations, the likelihood of an earlier US interest rate cut in 2026 will increase, providing further positive momentum for non-yielding assets, led by precious metals such as gold and silver.

Gold prices fell in the European market on Tuesday for the first time in six days, pulling back from their highest levels in two months amid active correction and profit-taking operations, while losses were capped by the continued weakness of the US dollar against a basket of global currencies.

Markets are awaiting later today the release of key US labor market data, especially the October jobs report, which was previously delayed due to the US government shutdown. The report is expected to provide strong signals about the future path of Federal Reserve monetary policy in 2026.

Price Overview

• Gold prices today: Gold declined by about 0.8% to $4,271.67, from an opening level of $4,305.35, after recording a session high of $4,317.90.

• At Monday’s settlement, gold prices rose by 0.15%, marking a fifth consecutive daily gain, and had earlier reached a two-month high at $4,353.59 per ounce during Friday’s trading.

The US Dollar

The US Dollar Index fell by 0.1% on Tuesday, extending its losses for the second consecutive session and nearing a two-month low, reflecting continued weakness in the US currency against a basket of global currencies.

The dollar has remained under pressure since last week’s Federal Reserve meeting, as the outcome was less hawkish than markets had anticipated, reviving bets on the continuation of the federal rate-cut cycle in 2026.

US Interest Rates

• According to the CME FedWatch Tool, pricing for keeping US interest rates unchanged at the January 2026 meeting currently stands at 73%, while the probability of a 25-basis-point rate cut is priced at 27%.

• Investors are currently pricing in two US rate cuts over the course of next year, while Federal Reserve projections point to only one 25-basis-point cut.

• To reassess these expectations, investors are closely monitoring upcoming US economic data, along with comments from Federal Reserve officials.

• The October US jobs report is due later today, and is expected to offer strong clues about the pace of growth in the world’s largest economy during the fourth quarter, which was heavily affected by the longest government shutdown in US history.

Gold Outlook

Tim Waterer, Chief Market Analyst at KCM Trade, said that the US dollar remains weak, which helps keep gold prices in an upward bias, as markets believe the Federal Reserve may be underestimating the number of potential rate cuts next year.

Waterer added that if labor market data confirms that employment remains a weak spot, gold could benefit, as this would strengthen the case for an early rate cut in 2026.

SPDR Gold Trust

Gold holdings at SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 1.43 metric tons on Monday, bringing total holdings down to 1,051.69 metric tons, retreating from 1,053.12 metric tons, which was the highest level since October 20.

The British pound fell in European trading on Tuesday against a basket of global currencies, pulling back from a two-month high against the US dollar, amid relatively active correction and profit-taking, alongside investor reluctance to build new long positions ahead of key UK economic data.

These data are expected to play a decisive role in shaping the Bank of England’s policy decision later this week, with current expectations pointing to a 25-basis-point cut in UK interest rates to a 3.75% range, the lowest level since December 2022, marking the fourth monetary easing step this year.

Price Overview

British pound price today: The pound slipped more than 0.1% against the dollar to $1.3362, from an opening level of $1.3377, after recording an intraday high of $1.3384.

On Monday, the pound posted gains of less than 0.1% against the dollar, resuming its upward move that had paused on Friday due to correction and profit-taking from a two-month high at $1.3438.

UK Interest Rates

Market pricing for a 25-basis-point rate cut by the Bank of England at this week’s meeting remains steady above 90%.

The Bank of England meets on Thursday to discuss appropriate monetary policy in light of recent economic developments in the UK, particularly as concerns over financial stability have eased following the announcement of a relatively moderate autumn budget.

Voting results from the Bank of England’s November meeting, when rates were held unchanged, showed a growing inclination among policymakers toward delivering a fourth easing move this year.

Updated policy guidance and comments from the Bank of England governor are expected to provide strong signals regarding the path of UK interest rates in 2026.

Key Data

To reassess the above expectations, investors are closely watching the release of highly important UK economic data throughout the day, including labor market indicators, alongside other readings covering the performance of key sectors of the economy.

Outlook for the British Pound

At Economies.com, we expect that if UK data come in less hawkish than markets anticipate, expectations for a UK rate cut this week will increase further, adding more downside pressure on the British pound against a basket of global currencies.

The Japanese yen rose in Asian trading on Tuesday against a basket of major and secondary currencies, extending its gains for a second consecutive session against the US dollar and hitting a two-week high, supported by negative pressure on the US currency ahead of the release of US monthly jobs data.

The yen’s advance is also supported by increased demand ahead of the Bank of Japan’s meeting on Thursday and Friday, as markets widely expect a 25-basis-point rate hike, marking the second step of monetary tightening this year.

Price Overview

Japanese yen price today: The US dollar fell 0.35% against the yen to ¥154.70, the lowest level since December 5, from an opening level of ¥155.21, after recording an intraday high of ¥155.24.

The yen ended Monday’s session up 0.4% against the dollar, marking its third gain in the past four days, amid continued unwinding of yen carry trades.

US Dollar

The US dollar index fell about 0.1% on Tuesday, extending losses for a second straight session and approaching a two-month low, reflecting continued weakness in the US currency against a basket of global currencies.

The dollar has remained under pressure since last week’s Federal Reserve meeting, after the outcome was less hawkish than markets had expected, reviving bets on the continuation of the US rate-cut cycle through 2026.

To reassess these expectations, traders are awaiting later today the release of the long-delayed US jobs report for October, which had been postponed due to the federal government shutdown.

Bank of Japan

The Bank of Japan meets on Thursday and Friday to discuss appropriate monetary policy for the world’s fourth-largest economy, amid strong expectations of a 25-basis-point rate hike to a range of 0.75%, the highest level since 2008 during the global financial crisis.

Markets are closely watching Governor Kazuo Ueda’s comments for guidance on the policy outlook for 2026, as expectations grow that the Japanese government may pursue further fiscal expansion, adding complexity to the policy backdrop facing the central bank.

Japanese Interest Rates

Following recent inflation and wage data in Japan, market pricing for a 25-basis-point rate hike at this week’s meeting has stabilized above 90%.

Bank of Japan Governor Kazuo Ueda recently struck a more optimistic tone on the Japanese economy, saying the central bank will assess the pros and cons of raising interest rates at its upcoming policy meeting.

Three government officials told Reuters that the Bank of Japan is likely to raise interest rates this December.

Views and Analysis

Analysts at Société Générale said they expect the Bank of Japan to raise interest rates to 1% by July next year, while also anticipating a rate hike when the policy decision is announced on Friday.

They added that once rates reach 1%, the Bank of Japan will enter uncharted territory, making a cautious tightening pace more likely, with gradual 25-basis-point increases and close monitoring of the impact on economic growth and price levels.

Société Générale analysts also expect intervals of no less than nine months to a full year between successive rate hikes.