Silver drops on demand concerns and Fed expectations

Silver traded around $30.5 per ounce on Monday, following a more than 4% drop over the past two sessions, as investors braced for the upcoming US Federal Reserve policy decision.

Silver drops on demand concerns and Fed expectations

The Fed is widely anticipated to reduce interest rates by 25 basis points on Wednesday, though traders have lowered expectations for further rate cuts in the coming year. Ongoing concerns over demand in China, the top consumer, also pressured silver prices. Data showed that retail sales in China grew slower than expected in November, signaling weaker consumption. Additionally, new home prices in China fell for the 17th month in November due to the prolonged property downturn.

Beijing's policy support falls flat as details remain sparse

While Beijing announced new policy support measures, including more fiscal stimulus and looser monetary policy, investors remained unenthused due to the lack of details on the scale of the proposed measures.