Silver climbed toward $31
Silver climbed toward $31, hitting a two-month high amid rising expectations that the Federal Reserve will opt for a more aggressive interest rate cut at this week's meeting. Markets are currently pricing in a 67% chance that the Fed will deliver a larger 50 basis point rate cut on Wednesday, up from 25% a month ago, while odds for a modest 25 bps reduction stands at 33%, according to CME's FedWatch Tool. Those expectations came as signs of a slowing labor market outweighed hotter-than-anticipated readings in key inflation gauges last week. Meanwhile, disappointing economic data from China raised demand concerns in the world's top metals consumer. Data released over the weekend showed that industrial output, retail sales and fixed asset investments in China missed forecasts in August. The urban unemployment rate also rose to a six-month high while home prices fell at the fastest pace in nine years.
Source: Trading Economics
