Spot Silver extended gains to a new three-week high of $51.17/oz. on Tuesday on expectations of another interest rate cut by the Federal Reserve and as market players eyed a potential end to the US government shutdown.
Yesterday the US Senate passed a deal that would restore federal funding and put an end to the longest-ever government shutdown. The latter has delayed the release of essential macro data, which complicated assessments of the US economy’s state, as investors had to rely on secondary, non-government data prints.
Yet, the bill still needs to clear the US House of Representatives before being sent to President Trump.
A government reopening will provide more clarity on the US economic outlook and the Federal Reserve’s policy path.
Markets are now pricing in about a 63% chance of a 25 basis point Fed rate cut in December, compared to a 68% chance a week earlier.
Spot Silver was last up 1.29% on the day to trade at $51.16 per troy ounce.
Robust industrial demand continued to support Silver prices amid supply constraints.
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