Silver nears $31.10 on Fed rate cut hopes, China support measures

Silver prices rose above $31.10 per ounce on Monday, nearing one-month highs as investors awaited key U.S. inflation data this week, which could strengthen expectations of a Federal Reserve interest rate cut in December.

Silver nears $31.10 on Fed rate cut hopes, China support measures

Market odds for a 25-basis point rate reduction have surged to 83%, up from 62% a week ago. Silver also benefited from gains in gold after China’s central bank resumed gold purchases following a six-month hiatus. Additionally, attention is paid to the Central Economic Work Conference in China, which will set the country’s economic priorities for 2025.

Traders expect China to introduce more support amid rising uncertainties

Traders are anticipating further economic support measures from Beijing as it navigates rising uncertainties, including the return of U.S. President-elect Donald Trump, bolstering the demand outlook for the world’s largest metals consumer.