Silver rises 2.5% to $50.33 as oil falls more than 3%
Key Facts
Spot silver rose 2.5% to $50.33 an ounce on November 2, while spot gold gained 0.8% to $3,903.90 by 07:57 GMT, according to a Reuters report. The gains came as oil fell at the start of the week, which financial markets analyst Kyle Rodda said “provides some relief for precious metals more broadly.” Oil prices fell more than 3% in Reuters’ morning report, following Iranian-Qatari talks in Doha on Sunday for a third consecutive day. The talks aimed to advance an agreement to end the U.S.-Israeli war on Iran, the report said. The development directly links commodity moves to the course of negotiations and the impact of energy prices on inflation and interest rate expectations.
Monday’s gains followed a sharp selloff on October 30, when spot gold fell 3.5% to $3,880.97 an ounce, its lowest level since October 2025, while silver dropped 6.5% to $49, according to Reuters. Over the week ended that day, silver, platinum and palladium fell between 7% and 9%, compared with a 2.9% decline in gold. The drop pushed relative strength indicators for white metals into oversold territory for the first time in three years. Commerzbank analysts linked Friday’s technology selloff to the possibility of forced sales of safe-haven assets, including gold, and margin calls. EL7 data show SIUSD closed at $49.276 on October 30 and $50.46 on November 2, while XAGUSD closed at $48.902 and $50.481 on those dates, respectively; these closing prices are separate from the intraday spot silver price reported by Reuters.
Lower oil prices offer metals some support by easing energy-related inflation concerns. Reuters said higher energy prices often reinforce expectations that the Federal Reserve will keep interest rates elevated for longer, increasing the opportunity cost of holding non-yielding bullion. But silver-specific pressures persisted despite the rebound: HSBC said industrial and jewelry demand for the metal were declining. The bank cut its average silver price forecast for 2027 to $64 an ounce, from its average forecast of $71 for 2026. The forecasts follow a week in which white metals fell more sharply than gold, according to Reuters data.
On October 28, the Federal Reserve kept its target range for the federal funds rate at 3.75% to 4%, in a decision approved by a 10-to-2 vote. Lisa Cook and Beth Hammack voted to raise the range by a quarter of a percentage point, dissenting from the decision to leave it unchanged. The committee’s statement described inflation as “still elevated” and said that accumulating more information would help it determine the appropriate policy stance to ensure inflation returns to its 2% target in a timely manner. The decision therefore left the door open to continued data assessment, while the two members’ votes reflected disagreement over the appropriate level of interest rates. The cost of holding non-yielding assets remains part of the calculation linking metals’ moves to monetary policy expectations.
In broader markets, Brent crude fell 6.2% to $106.45 a barrel, and West Texas Intermediate dropped 6.5% to $97.40, according to a later update on November 2. The S&P 500 energy sector index also fell 2.1% on Monday, as crude declined following diplomatic developments in the Middle East. These figures show that oil’s decline exceeded the more than 3% estimate in Reuters’ morning report as the session progressed. Crude fell as the Doha talks took place, while energy stocks reacted to the impact of lower oil prices. In this context, metals’ moves remain linked to crude’s trajectory and the monetary policy implications of energy’s impact on inflation.
Investors will next focus on the U.S. midterm elections scheduled for November 3, followed by the U.S. October jobs report, due on November 6 at 08:30 a.m. Eastern Time. The Federal Reserve calendar also set its next meeting for December 8 and 9, a meeting associated with a Summary of Economic Projections. These dates provide near-term milestones for tracking political developments, economic data and the interest rate outlook. The December meeting follows October’s decision to leave the target range unchanged, with two dissenters favoring a hike. Monday’s silver move combined a rebound from the previous week’s decline with lower energy prices linked to developments in Middle East talks.