Silver prices slid in European trading on Tuesday to their lowest level in a week, extending losses for a fourth consecutive session and falling below the 50-dollar-per-ounce threshold, pressured by the U.S. dollar’s ongoing strength in foreign-exchange markets.

More hawkish commentary from Federal Reserve policymakers has reinforced caution toward further monetary easing in the United States, reducing expectations for a rate cut in December.

Price Overview

Silver fell 1.7% to 49.36 dollars—its lowest in a week—down from the opening level of 50.20 dollars, after touching an intraday high of 50.22 dollars.

At Monday’s settlement, silver lost 0.7%, marking a third straight daily decline under pressure from the stronger U.S. dollar.

U.S. Dollar

The dollar index rose 0.1% on Tuesday, extending gains for a third straight session as the U.S. currency continued to strengthen against major and minor peers.

This performance reflects ongoing demand for the dollar as the preferred investment in FX markets, especially as expectations fade for a December Federal Reserve rate cut.

U.S. Interest Rates

Federal Reserve Vice Chair Philip Jefferson said Monday that the central bank needs to “proceed slowly” with additional rate cuts.

According to CME’s FedWatch tool, markets currently price a 45% chance of a 25-basis-point rate cut in December, with a 55% probability of no change.

Investors are closely monitoring Fed remarks while awaiting delayed U.S. inflation and labor-market data.

Outlook for Silver

At Economies,com, we expect that if upcoming Fed comments turn out more hawkish than markets anticipate, expectations for a December rate cut may decline further, adding additional negative pressure on non-yielding assets—particularly precious metals such as gold and silver.

Gold prices fell in European trading on Tuesday, extending losses for a fourth straight session and slipping below the psychological 4,000-dollar level per ounce to their lowest in two weeks, pressured by the U.S. dollar’s continued strength in foreign-exchange markets.

More hawkish commentary from Federal Reserve officials has reinforced caution toward further monetary easing, reducing expectations for a U.S. rate cut in December.

Price Overview

Gold dropped 1.2% to 3,998.04 dollars—its lowest since November 7—down from the opening level of 4,045.18 dollars, after touching an intraday high of 4,055.40 dollars.

At Monday’s settlement, gold lost 0.95%, marking a third consecutive daily decline as correction and profit-taking continued from the three-week high of 4,245.13 dollars per ounce, while dollar strength added downward pressure.

U.S. Dollar

The dollar index edged up by less than 0.1% on Tuesday, maintaining gains for a third session as the U.S. currency continued to strengthen against major and minor peers.

This steady performance reflects ongoing demand for the dollar as the preferred investment in FX markets, particularly as expectations for a December Fed rate cut continue to fade.

U.S. Interest Rates

Federal Reserve Vice Chair Philip Jefferson said Monday that the central bank needs to “proceed slowly” with additional rate cuts.

According to CME’s FedWatch tool, markets are pricing about a 45% chance of a 25-basis-point rate cut in December, with a 55% probability of rates being left unchanged.

Investors are monitoring Fed remarks closely while awaiting delayed U.S. inflation and labor-market data.

Gold Outlook

Edward Meir, analyst at Marex, said the dollar was “slightly stronger today,” and noted that some speculative positions were trimmed last week. He added that gold is likely to enter a consolidation phase for now.

ANZ Bank wrote in a note that expectations for another Fed rate cut next month fell to around 42% overnight, down from nearly 100% immediately after the September decision, adding pressure to investor appetite for gold.

The bank added that structural factors—such as geopolitical uncertainty, concerns about U.S. debt sustainability, global de-dollarization trends, and central-bank buying—are expected to support medium- and long-term investment demand for gold.

SPDR Gold Trust

Holdings at SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 2.57 metric tons on Monday, marking a second straight daily decline and bringing total holdings down to 1,041.43 metric tons, the lowest since November 6.

The euro rose in European trading on Tuesday against a basket of global currencies, moving into positive territory for the first time in three sessions against the U.S. dollar, supported by a pause in the greenback’s rally ahead of further remarks from Federal Reserve officials.

Investors are awaiting a series of key economic releases in the eurozone in the coming period to gain more clarity on the likelihood of a European Central Bank rate cut in December.

Price Overview

The euro rose 0.1% against the dollar to 1.1604 dollars, up from the opening level of 1.1592 dollars, after touching an intraday low of 1.1585 dollars.

The euro ended Monday’s session down 0.25% against the dollar, marking a second straight daily decline as correction and profit-taking continued following the two-week high of 1.1656 dollars.

U.S. Dollar

The dollar index slipped 0.1% on Monday, heading for its first loss in three sessions, reflecting a pause in the U.S. currency’s advance against major and minor peers.

Traders are closely monitoring a series of remarks from Federal Reserve officials throughout the day focusing on economic developments and the outlook for a December rate cut.

More hawkish commentary from several officials last week pushed rate-cut expectations for December down from 67% to 43%.

Analysts at ING wrote in a research note that if the Fed opts to hold rates steady in December, it would likely represent only a temporary pause. They added that upcoming economic data will be decisive, with some tolerance for softer labor figures given ongoing supply-side shocks.

European Interest Rates

Money-market pricing continues to assign roughly a 25% probability of a 25-basis-point ECB rate cut in December.

Investors will reassess these expectations as more European data is released and policymakers deliver further guidance.

The Japanese yen rose in Asian trading on Tuesday against a basket of major and minor currencies, attempting to recover from its nine-month low reached earlier in the session against the U.S. dollar, as buyers stepped in at lower levels.

Bank of Japan Governor Kazuo Ueda will hold his first official meeting with newly appointed Prime Minister Sanae Takaichi later today, an event closely watched for potential signals regarding the timing of the central bank’s next rate-hike move.

Price Overview

The dollar fell about 0.25% against the yen to 154.82¥, down from the opening level of 155.17¥, after touching a high of 155.38¥—its strongest since February.

The yen ended Monday’s session down 0.4% against the dollar, marking a second straight day of losses after data showed the Japanese economy contracted in the third quarter.

Takaichi–Ueda Meeting

The first official meeting between Prime Minister Sanae Takaichi and BOJ Governor Kazuo Ueda begins at 06:30 GMT, a discussion expected to play a pivotal role in shaping Japan’s monetary-policy outlook for the coming months.

The meeting comes as Japan grapples with an economic contraction and a sharply weaker yen, which recently hit a nine-month low against the U.S. dollar, while debates intensify over the path of interest rates in the world’s fourth-largest economy.

The two sides are expected to discuss the future of monetary policy, particularly the prospects of resuming rate hikes—something Ueda has hinted could happen soon—versus the government’s preference under Takaichi for a more expansionary, growth-focused approach that eases the burden on households and businesses.

The meeting will likely cover coordination efforts between the government and the Bank of Japan to manage rising inflation pressures, maintain financial stability, and avoid market disruptions, especially given global sensitivity to BOJ decisions as the operator of the world’s largest stimulus program.

Markets will be watching the outcome closely, as it may set the tone for yen trading and Japanese bond yields in the coming period.

Views and Analysis

Kesuke Tsuruta, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said delays in BOJ rate hikes could further weaken the yen and increase import costs, conflicting with Takaichi’s goal of boosting real wages.

Tsuruta added that discussions will likely focus on how specific the prime minister intends to be when calling on the BOJ to act in coordination with the government.

Japanese Interest Rates

Money-market pricing currently assigns about a 35% probability of a quarter-point BOJ rate hike in December.

Investors await further data on inflation, unemployment, and wage trends in Japan to reassess these expectations.