Silver Price News: Silver Holds Steady After Monday’s One-Month High

Silver prices traded flat on Tuesday, holding onto solid gains seen on Monday.

Prices moved in a range of $31.76 to $32.33 an ounce on Tuesday, compared with around $31.90 an ounce in late deals on Monday. Monday saw prices rally from as low as $30.92 an ounce earlier in the day to hit a one-month high of $32.44 an ounce.

The stability for silver came as gold prices made solid gains for a second day, providing a supportive backdrop for the grey metal.

China policy news gives precious metals a lift

Precious metals markets took support at the start of the week from news that China’s central bank had restarted its purchases of gold after a six-month hiatus. A more accommodative monetary policy stance unveiled by the Chinese government also gave traders a reason to step into precious metals on the buy side.

Silver buoyant ahead of rate cuts

Silver, like gold, continues to draw support from broad expectations that the US Fed will cut interest rates by 25 basis points on December 18^th. However, while the market widely anticipates cuts before the end of the year, the outlook for 2025 remains less clear as expected trade policies by the incoming Trump administration are likely to be inflationary, curbing the prospects for further monetary loosening by the central bank.

Upcoming events

Upcoming data releases include US inflation figures for November on Wednesday. However, more of the market’s focus will be drawn to monetary policy developments from several countries this week, notably an interest rate decision by the Bank of Canada on Wednesday, followed by the ECB’s interest rate decision on Thursday – expected to constitute a 25 basis-point cut. Thursday will also see Indian industrial production figures for October, monthly US producer price inflation data, and weekly initial jobless claims figures, for the latest update on the US economy.