Silver stabilizes after two-day drop

Silver held near $51 per ounce on Monday after a sharp two-day decline, as investors prepared for a wave of US economic data following the government reopening that could clarify the Federal Reserve’s policy outlook.

Precious metals faced heavy selling late last week as traders scaled back expectations for US rate cuts, with markets now pricing in about a 46% chance of a 25 bps Fed reduction next month, down sharply from roughly 88% a month earlier.

Attention is turning to the closely watched September jobs report due Thursday, while markets await an updated schedule of economic releases.

Meanwhile, the US Department of Interior recently added silver, copper, and metallurgical coal to its “critical minerals” list, underscoring their economic and national security importance.

The designation could pave the way for Section 232 investigations and trade restrictions, as previously applied to copper earlier this year.