"Silver's climb accelerated after a string of subdued economic indicators signalled that the consumers sentiment is declining further. U.S. retail sales missed expectations, and the Conference Board's Consumer Confidence Index dropped sharply to 88.7 in November, its lowest reading since May. Producer Price Index (PPI) inflation readings were modest too, giving no headwind to rate cut hopes. These data points collectively strengthen the case that further monetary easing has become more likely and that growth risks are re-entering the macro conversation."
"Besides, reports that Kevin Hassett, a figure known for favouring lower policy rates, is being considered for the Fed chairmanship added another dovish tilt. With these, rate expectations shifted quickly in response. Markets now price an 84% probability of a 25 bp Federal Reserve cut next month, according to the CME FedWatch Tool, rising from below 40 percent a week earlier."
"The U.S. federal budget balance widened to a deficit of 284.4 billion dollars in October from 198.0 billion dollars in September. Such persistent fiscal slippage typically supports demand for safe assets and weaking the dollar, particularly when paired with weakening growth data and a potential policy shift. The market is interpreting these crosscurrents as a signal that defensive hedging is becoming more attractive at a time when monetary and fiscal trajectories appear increasingly aligned toward easing."
Silver rose nearly 1% to above $52 per ounce, marking a third consecutive day of gains as investors sought safety. Weak U.S. economic indicators — including missed retail sales, a drop in the Conference Board's Consumer Confidence Index to 88.7, and modest PPI inflation readings — reinforced expectations for a December Federal Reserve rate cut. Reports that Kevin Hassett is being considered for Fed chair added dovish sentiment. Markets now price an 84% probability of a 25 bp cut next month. The U.S. federal budget deficit widened to $284.4 billion in October, supporting demand for safe assets and weakening the dollar.
Read at London Business News | Londonlovesbusiness.com
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