Silver drops below $30.5 amid Fed and China demand concerns

Silver traded below $30.5 per ounce on Tuesday, continuing to face significant selling pressure following concerns over a slower pace of easing by the US Federal Reserve next year.

Silver drops below $30.5 amid Fed and China demand concerns

While the Fed is widely expected to announce a 25 basis point interest rate cut this week, it may signal fewer reductions for 2025 amid fears of a potential resurgence in inflation. Silver and other metals also came under pressure due to ongoing uncertainty about demand in China, the world’s largest metal consumer. Data earlier this week revealed that China's retail sales growth in November was weaker than expected, signaling a slowdown in consumption. Additionally, new home prices in China dropped for the 17th consecutive month, underscoring ongoing challenges in the property market.

Beijing's stimulus pledges fail to boost investor confidence

Beijing’s recent stimulus pledges have failed to spark significant investor optimism, mainly due to the lack of details on the size and scope of potential rescue measures.