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 at 07:57 GMT on Nov. 2, according to Reuters via MarketScreener. On the same day, oil prices fell more than 3% after reports that Iranian negotiators were in Doha on Sunday for talks aimed at ending the U.S.-Israeli war on Iran. Reuters said the decline in oil eased inflation concerns, providing some relief to precious metals at the start of the week. Spot gold rose in tandem, gaining 0.8% to $3,903.90 an ounce at 07:57 GMT.
By contrast, the decline in energy prices was not just a separate market move; Reuters linked the fall in oil to easing inflation concerns, and a financial markets analyst said it gave precious metals "some relief." This connection puts energy prices among the factors traders monitor when assessing the direction of inflation and monetary policy. Silver had fallen below $50 before the trading day in which it posted gains, as markets continued to weigh the impact of cheaper oil against concerns that monetary policy would remain restrictive.
Inflation and interest rates are central to the backdrop for trading in metals, which pay no yield. A Reuters report said rising energy prices often reinforce expectations that U.S. interest rates will stay higher for longer, increasing the opportunity cost of holding bullion. But oil's fall of more than 3% on Monday eased inflation concerns, according to the report, providing broad support for precious metals. That shift does not eliminate investor concern about the path of interest rates; lower energy prices and monetary policy expectations pull in different directions when assessing the cost of holding non-yielding assets. Silver therefore gained in a session when oil fell, while signals from the Federal Reserve remained part of market calculations.
The Federal Reserve had held its target range for the federal funds rate at 3.75% to 4% on Oct. 28, while two members voted to raise it by a quarter of a percentage point. The central bank described inflation as "still elevated" and said the accumulation of more information would help the committee determine the appropriate policy stance. On Friday, Oct. 30, three Fed officials called for further rate increases to combat elevated inflation, after the meeting that kept short-term borrowing costs unchanged. Their remarks highlight differing signals in the monetary policy debate: the decision to hold the range at the meeting, alongside calls from some officials to raise it. Traders continued to price in about a 73% chance of a rate increase in December, according to CME Group's FedWatch tool, as reported by Reuters on Nov. 2.
Friday's session also followed pressure on safe-haven assets. A Reuters report said a sell-off in technology stocks triggered margin calls, followed by forced selling of assets such as gold. Gold fell 3.5% on Friday to its lowest level since October 2025, according to the report. This backdrop provides context for metals' moves at the start of the week, as lower oil prices and easing inflation concerns coincided with a recovery in gold and silver. While silver gained 2.5%, gold rose 0.8% to $3,903.90 an ounce at the time cited by Reuters. The interest rate path remained a focus for the market, with a roughly 73% chance of a December increase priced in.
Investors then turned their attention to the U.S. midterm elections scheduled for Nov. 3, monitoring their potential implications for fiscal policy and market sentiment. Reuters said traders focused on what the elections could mean for those two factors, while continuing to watch inflation and Fed signals. The elections come after the Oct. 28 meeting that held the rate range at 3.75% to 4%, and calls by three officials for further increases to combat inflation. The chance of a December rate increase, which traders estimated at about 73% on Nov. 2, also remained among the issues markets were tracking. In this context, silver moved above $50 while oil, inflation and the path of monetary policy remained key areas of focus.