Silver prices rose in the European market on Tuesday, extending gains for the fifth consecutive session and hitting a fresh 14-year high. The metal is now on track to surpass the $43 per ounce threshold for the first time since 2011, supported by the broad decline in U.S. dollar levels.

Later today, the Federal Reserve kicks off its key monetary policy meeting, with decisions due Wednesday. Markets broadly expect at least a 25-basis-point rate cut.

Price Overview

• Silver prices today: The metal rose 0.25% to $42.78 an ounce — the highest since September 2011 — up from an opening level of $42.68, after touching an intraday low of $42.35.

• On Monday, silver settled 1.2% higher, marking a fourth straight daily gain, aided by weaker U.S. dollar and Treasury yields.

U.S. Dollar

The dollar index fell 0.3% on Tuesday, extending losses into a second session and hitting a 10-week low at 97.04, reflecting continued weakness of the U.S. currency against a basket of global peers.

As is well known, a weaker U.S. dollar makes dollar-denominated precious metals more attractive to holders of other currencies. The current drop stems from active selling of the greenback ahead of the Fed’s expected 25-basis-point rate cut on Wednesday.

This comes as President Donald Trump continues to pressure Fed policymakers for deeper cuts. In a social media post on Monday, Trump urged Fed Chair Jerome Powell to deliver a “larger” reduction in the benchmark rate, citing risks to the U.S. housing market.

Federal Reserve

The Fed’s two-day meeting begins later today, with decisions due Wednesday. Markets expect a 25-basis-point cut, while policymakers’ statement, economic projections, and Powell’s remarks will provide stronger clues on the likelihood of further easing later this year.

Rate Expectations

• According to CME’s FedWatch tool: markets are pricing a 100% chance of a 25-basis-point cut this week, and a 4% chance of a larger 50-point move.

• For October, rate-cut expectations remain fully priced at 100% for 25 basis points, with just 3% odds for a deeper 50-point cut.

Oil prices held steady on Tuesday as markets weighed the potential disruption of Russian supplies following Ukrainian drone strikes on refineries against expectations of an imminent U.S. interest-rate cut.

Brent crude futures slipped 20 cents, or 0.3%, to $67.24 a barrel by 08:19 GMT, while U.S. West Texas Intermediate (WTI) crude fell 19 cents, or 0.3%, to $63.11. Brent had settled 45 cents higher at $67.44 on Monday, while WTI gained 61 cents to $63.30.

Ukraine has intensified strikes on Russian energy infrastructure in a bid to weaken Moscow’s war capabilities as peace talks stall. JPMorgan analysts noted: “Targeting an export hub like Primorsk is primarily aimed at curbing Russia’s ability to sell oil abroad, with direct implications for export markets.” They added: “More importantly, such attacks signal a growing willingness to disrupt global oil markets, which could add further upward pressure on prices.”

Goldman Sachs estimated that Ukrainian strikes disrupted about 300,000 barrels per day of Russian refining capacity in August and early September. The bank added that “despite rising uncertainty around secondary tariffs and additional sanctions, we assume Russian output will decline only slightly, with Asian buyers still showing willingness to take in Russian crude.”

Separately, U.S. Treasury Secretary Scott Bessent said Monday that Washington would not impose additional tariffs on Chinese goods to pressure Beijing to halt purchases of Russian oil unless European nations also imposed similar measures on China and India, the two largest buyers of Russian crude.

Investors are also focused on the Federal Reserve’s September 16–17 meeting, where the central bank is widely expected to deliver a rate cut. While lower borrowing costs typically support fuel demand, analysts have expressed caution over the broader resilience of the U.S. economy.

Attention is also on U.S. inventory data. Walter Chancellor, energy strategist at Macquarie Group, said in a client note he expects U.S. crude stockpiles to have fallen by 6.4 million barrels in the week to September 12, after rising by 3.9 million barrels the previous week.

A Reuters survey on Monday showed analysts anticipate U.S. crude and gasoline inventories fell last week, while distillate stocks likely rose.

The U.S. dollar fell on Tuesday to its lowest level in more than two months against the British pound and the euro, and to a ten-month low against the Australian dollar, as investors increased bets on an expected Federal Reserve rate cut this week.

The dollar index – which measures the performance of the greenback against a basket of six major currencies – dropped to 97.121 after touching its weakest level since July 7, coinciding with renewed calls from U.S. President Donald Trump for bolder monetary easing.

Markets expect the Fed to cut rates by 25 basis points on Wednesday, after a run of weak U.S. labor market data in recent weeks strengthened bets on further easing.

In a social media post on Monday, Trump urged Fed Chair Jerome Powell to implement a “larger” cut, citing conditions in the housing market.

Mohit Kumar, strategist at Jefferies, said: “The focus is on Wednesday’s Fed meeting… the key will be Powell’s tone.” He added: “If Powell emphasizes inflation risks or uncertainty around growth and inflation expectations, we may see markets trim some of their rate-cut expectations.”

In currency markets, sterling rose 0.2% to $1.3627, its highest level since July 8, after data showed the UK labor market losing some momentum, which could ease the Bank of England’s concerns over persistent inflation pressures.

Data from the Office for National Statistics showed the number of employees on company payrolls fell for a seventh consecutive month, while private-sector wage growth – closely watched by the BoE – slowed to 4.7% between May and July, compared with 4.8% in the three months to June. The BoE is expected to leave rates unchanged this week after cutting them in August.

Laith Al-Khunor, global markets analyst at eToro, said: “Until inflation convincingly declines, the Bank of England will remain stuck at elevated interest-rate levels, which keeps pressure on growth.”

The euro gained as much as 0.3% against the dollar to reach $1.1797, its highest level since July 3. Investors are awaiting German ZEW survey data, eurozone wage figures, and industrial production numbers later in the day.

The Australian dollar edged slightly lower by 0.06% to $0.6666, after rising earlier to $0.6677, its strongest level since November 8.

Meanwhile, the dollar weakened 0.3% against the Japanese yen to 146.920 ahead of Friday’s Bank of Japan meeting, where markets widely expect rates to be kept unchanged at 0.5%.

On the political front, Japan’s agriculture minister and the government’s chief spokesperson announced their bids to lead the ruling party, succeeding outgoing Prime Minister Shingoro Ishiba, who stepped down last month.

Gold prices rose in the European market on Tuesday, extending gains for the third consecutive session and setting a fresh all-time high, on the verge of surpassing the $3,700 per ounce barrier for the first time in history, supported by the continued decline of the U.S. dollar in the foreign exchange market.

Later today, the Federal Reserve’s highly anticipated monetary policy meeting will commence, with decisions due on Wednesday. Market expectations currently remain anchored on a 25 basis-point interest rate cut.

Price Overview

Gold prices today: The price of the precious metal rose by 0.5% to a new all-time high of $3,697.26, from the opening level of $3,679.21, after recording a session low of $3,674.82.

At Monday’s settlement, gold gained 1.0%, its second consecutive daily rise, also hitting a new record high.

U.S. Dollar

The dollar index fell 0.3% on Tuesday, deepening losses for the second straight session and hitting a 10-week low of 97.04, reflecting continued weakness in the U.S. currency against a basket of major peers.

This decline is attributed to active selling ahead of the Fed’s expected decision on Wednesday to cut interest rates by 25 basis points.

At the same time, U.S. President Donald Trump has been increasing pressure on Fed policymakers to implement deeper rate cuts. In a social media post on Monday, Trump called on Fed Chair Jerome Powell to deliver a “larger” rate cut, citing risks facing the U.S. housing market.

Federal Reserve

Later today, the Federal Reserve begins its key monetary policy meeting, with decisions due on Wednesday. Expectations indicate a 25 basis-point rate cut.

Monetary policy data, updated economic projections, and remarks from Fed Chair Jerome Powell are expected to provide strong clues on whether additional cuts will follow later this year.

U.S. Interest Rates

According to CME FedWatch: The probability of a 25 basis-point cut at this week’s meeting is currently priced at 100%, while the chance of a larger 50 basis-point cut stands at 4%.

For the October meeting, markets are also pricing a 100% chance of a 25 basis-point cut, and a 3% chance of a 50 basis-point cut.

Gold Outlook

UBS analyst Giovanni Staunovo said: “Dollar weakness is playing a major role in driving gold higher, but it all comes down to expectations for the Fed’s rate cut this week.”

Staunovo added: “With the Fed’s statement imminent, we expect higher volatility, especially if markets perceive the cut to come with a hawkish tone.”

He further noted: “But with Trump pushing for a larger cut, I believe gold is likely to trend higher in the coming months.”

Traders and industry experts at the India Gold Conference in New Delhi commented that gold’s stunning surge to successive record highs shows every sign of continuing through the end of 2025, though a strong technical correction is expected before it breaks above $4,000 per ounce in 2026.

SPDR Fund

Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 2.01 metric tons on Monday, lifting the total to 976.81 metric tons, rebounding from 974.80 metric tons, the lowest since August 28.