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Spot Silver was mostly steady on Monday, after a week of increased volatility, as market players assessed the Federal Reserve’s policy outlook and easing US-China trade tensions.

The Federal Reserve lowered its federal funds rate target range by 25 basis points to 3.75%-4.00% at its October meeting, in line with market consensus. This way, borrowing costs were brought to their lowest level since 2022.

Yet, Fed Chair Jerome Powell said at the regular press conference that a December rate cut was not a foregone conclusion.

As a result, market players pared bets of another rate cut by the Fed in December.

Markets are now pricing in about a 67% chance of a 25 basis point Fed rate cut in December, compared to a 94% chance a week earlier.

Meanwhile, the US Dollar Index held close to a three-month high. A firmer dollar makes dollar-priced Silver less appealing to international investors holding other currencies.

Spot Silver was last up 0.12% on the day to trade at $48.73 per troy ounce.

Robust industrial demand continued to support Silver prices amid supply constraints.

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