Silver prices fell in European trading on Tuesday, extending losses for the third consecutive session as most metal and commodity prices declined under pressure from a broadly stronger U.S. dollar against a basket of major currencies.

The white metal also came under pressure after weak industrial data from China renewed concerns about physical demand in the world’s largest consumer of metals.

Price Overview

• Today’s prices: Spot silver fell 1.25% to $47.49 an ounce, down from the opening level of $48.09, after touching an intraday high of $48.23.

• On Monday, silver lost about 1.2%, marking its second consecutive daily decline.

U.S. Dollar

The U.S. Dollar Index rose about 0.2% on Tuesday, extending gains for the fifth straight session to a three-month high of 100.05 points, reflecting continued strength in the greenback against both major and minor currencies.

The dollar’s rise came as investors favored it as the most attractive asset in the current environment, amid growing uncertainty over whether the Federal Reserve will proceed with another rate cut in December, following a series of hawkish comments from policymakers.

The Fed lowered interest rates last week for the second consecutive time, but Chair Jerome Powell indicated that this could be the last cut of the year.

Chinese Demand

In Beijing, data released earlier this week showed a sharper-than-expected slowdown in industrial activity during October, renewing concerns about the pace of recovery in the world’s second-largest economy.

Chinese authorities are continuing to deploy additional fiscal and monetary measures in an effort to revive economic activity, aiming to pull the country out of stagnation and back onto a stable growth path.

Gold prices fell in European trading on Tuesday, extending losses for the third consecutive session as the metal once again slipped below the key 4,000-dollar level per ounce, pressured by a stronger U.S. dollar against a basket of major currencies.

More hawkish remarks from several Federal Reserve officials reduced expectations of another rate cut in December, while investors await further U.S. economic data for clearer direction.

Price Overview

• Today’s prices: Spot gold fell 0.9% to $3,966.82 an ounce, down from the opening level of $4,001.66, after hitting an intraday high of $4,005.86.

• On Monday, gold closed slightly lower—less than 0.1%—marking its second straight daily loss.

U.S. Dollar

The U.S. Dollar Index rose about 0.2% on Tuesday, extending gains for the fifth session in a row to a three-month high of 100.05 points, reflecting continued strength of the greenback against major and minor currencies.

A stronger dollar makes gold—priced in dollars—less attractive to holders of other currencies. The rise came as investors favored the dollar as the most appealing asset amid growing uncertainty over whether the Federal Reserve will deliver another rate cut in December, following a series of hawkish statements from policymakers.

The Fed lowered interest rates last week for the second consecutive time, but Chair Jerome Powell indicated that this could be the final cut of the year.

U.S. Interest Rates

• Dallas Fed President Lorie Logan said the Fed should not have cut rates at its most recent meeting, while Cleveland Fed President Beth Hammack also opposed last week’s move.

• Atlanta Fed President Raphael Bostic stated that a December rate cut is “not a given.”

• According to CME’s FedWatch tool, market pricing for a 25-basis-point rate cut in December fell from 70% to 63%, while expectations of keeping rates unchanged rose from 30% to 37%.

• Investors are closely watching the upcoming release of key U.S. economic data, as well as further Fed commentary, to reassess the outlook for policy.

Gold Outlook

• Tim Waterer, Chief Market Analyst at KCM Trade, said the stronger dollar remains “a thorn in gold’s side,” as traders reassess the likelihood of another rate cut by year-end.

• He added: “If we see another weak ADP employment reading in the U.S., it could give gold a foothold to regain upward momentum.”

SPDR Holdings

Holdings in SPDR Gold Trust—the world’s largest gold-backed exchange-traded fund—rose by 2.58 metric tons on Monday to 1,041.78 tons, the highest level since October 24.

The euro fell in European trading on Tuesday against a basket of major currencies, extending its losses for the fifth consecutive session against the U.S. dollar and reaching a three-month low, as selling pressure on the single currency persisted amid strong demand for the dollar as the preferred safe investment.

The slowdown in eurozone inflation during October eased price pressures on European Central Bank policymakers and revived expectations of a possible rate cut in December.

Price Overview

• Today’s exchange rate: The euro fell 0.2% against the U.S. dollar to $1.1498 — its lowest level since August 1 — down from the opening level of $1.1520, after hitting an intraday high of $1.1521.

• On Monday, the euro closed 0.15% lower versus the dollar, marking its fourth straight daily loss amid persistent selling pressure.

U.S. Dollar

The U.S. Dollar Index rose about 0.2% on Tuesday, extending gains for a fifth consecutive session to reach a three-month high of 100.05 points, reflecting continued strength in the greenback against a basket of major and minor currencies.

This advance came as investors favored the dollar as the best available investment, amid rising uncertainty over whether the Federal Reserve will proceed with another rate cut in December, particularly after a series of hawkish comments from Fed policymakers.

The Federal Reserve lowered interest rates last week for the second consecutive time, though Chair Jerome Powell indicated that this may be the final cut of the year.

European Interest Rates

• Data released late last week showed headline inflation in the eurozone slowed as expected in October, while core inflation remained steady — easing price pressures on European Central Bank officials.

• Following these figures, market pricing for a 25-basis-point ECB rate cut in December rose from 10% to 25%.

• Investors now await further economic data from across Europe, as well as additional remarks from European Central Bank officials, to reassess the outlook for monetary policy.

The Australian dollar fell in European trading on Tuesday against a basket of major currencies, extending its losses for the fifth consecutive session against its U.S. counterpart and hitting a two-week low following the latest policy meeting of the Reserve Bank of Australia (RBA).

The central bank kept interest rates unchanged, in line with most market expectations, marking the second consecutive meeting without a move. It also warned that inflationary pressures in the economy remain persistent, weakening the outlook for a potential rate cut in December.

Price Overview

• Today’s exchange rate: The Australian dollar fell 0.3% against the U.S. dollar to 0.6518 — its lowest since October 24 — down from the opening level of 0.6536, after recording a session high of 0.6541.

• On Monday, the currency closed 0.1% lower versus the dollar, marking its fourth straight daily loss following weak economic data from China, Australia’s largest trading partner.

Reserve Bank of Australia

As expected, the RBA on Tuesday decided to leave its benchmark cash rate unchanged at 3.60%, the lowest level in nearly two and a half years, for the second consecutive meeting. The decision was unanimous among members of the Monetary Policy Committee.

The RBA Keeps Rates Unchanged for the Second Consecutive Meeting

The central bank projected that core inflation will remain above target until after mid-2026 and warned that inflationary pressures continue to persist based on the latest data.

“The labor market has improved slightly, though it remains somewhat tight,” the RBA said, adding that household consumption appears to be recovering at a slightly faster pace than expected.

The statement noted that the Board remains focused on its mandate to achieve price stability and full employment, and will take whatever action is deemed necessary to meet these goals.

Michele Bullock

RBA Governor Michele Bullock said on Tuesday:

• “It’s possible there may be no further rate cuts, but it’s also possible there could be some additional easing.”

• “We discussed maintaining the current stance and its future outlook, and we are proceeding cautiously.”

• “We did not consider an immediate rate cut.”

• “There may be less need for monetary easing in this cycle compared to previous ones.”

Australian Interest Rate Outlook

• Following the meeting, market pricing for a 25-basis-point rate cut by the RBA in December fell from 65% to 35%.

• Investors now await upcoming data on inflation, unemployment, and wages to reassess expectations for monetary easing in Australia.