In Monday’s North American trading session, silver prices (XAG/USD) are holding steady, remaining just below a critical resistance level of $34.00. Market activity for the white metal is subdued, as investors brace for a week filled with important U.S. economic releases. Key data, including labor market indicators, the Personal Consumption Expenditure (PCE) Price Index, and third-quarter Gross Domestic Product (GDP) figures, are expected to provide insights into the Federal Reserve’s possible interest rate moves for the remainder of the year.
The general expectation among financial markets is that the Fed may opt for a 25 basis-point interest rate cut in both its November and December meetings. With Fed officials showing confidence in the ongoing disinflation trend, attention is firmly focused on labor and GDP figures to gauge potential economic risks.
Meanwhile, the U.S. Dollar Index (DXY)—which measures the dollar’s performance against six major currencies—has slightly retreated after recently approaching a three-week high of 104.60. Yields on the 10-year U.S. Treasury are stable, trading near 4.23%.
On the geopolitical front, ongoing tensions between Israel and Iran are providing some support to silver prices. Israel conducted airstrikes targeting Iran’s defense manufacturing over the weekend. Israeli Prime Minister Benjamin Netanyahu stated, “We promised we would respond to the Iranian attack, and on Saturday we struck. The attack in Iran was precise and powerful, achieving all of its objectives,” as reported by Home Newsday.
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