Silver prices held steady near $54 an ounce on Tuesday, recovering slightly from recent multi-month lows. The stabilization came as falling oil prices and bargain-hunting ahead of the Federal Reserve’s policy decision provided some support.
Crude oil prices dropped for a second straight session, driven by renewed diplomatic efforts to ease US-Iran tensions. This decline helped alleviate near-term inflation concerns, though energy prices remained high enough to keep inflation risks in focus.
The Federal Reserve is widely expected to maintain current interest rates this week, with investors closely watching for any hints about future rate adjustments. Markets currently assign an 82% probability to a rate hike in December, according to the CME FedWatch Tool.
Investors will also be monitoring upcoming US GDP and PCE price index data for further insights into the economic outlook and the Fed’s policy direction.