Silver rose 1.35 percent on Tuesday to trade around $57.90 an ounce at the time of writing, supported by a weaker US Dollar and declining US Treasury yields. The metal has been bid as the currency and bond markets moved in its favour during the session. Our own market data put silver at $57.85 an ounce as of 17:46 GMT on 20 October.
Oil swings on Iran talk reports
Oil prices fell on reports of progress in US-Iran diplomacy, then gave back part of the decline after the reports were disputed. West Texas Intermediate crude was trading at $97.40 a barrel at the time of press, having briefly traded above $100 earlier in the day.
Israel’s Channel 12 reported that a compromise proposal put forward by Pakistan’s army chief had preliminary approval from Washington and Tehran. A diplomat involved in the negotiations later said an agreement was not imminent.
Rate outlook and data ahead
Traders are pricing a small chance of a rate hike at the Federal Reserve’s October 27-28 meeting, with the CME FedWatch Tool showing 17 percent odds. The probability of an increase in December is shown at about 92 percent.
September consumer and producer price data both came in above market expectations. The US federal funds rate is 3.88 percent, in force since 16 October.
The Fed enters a blackout period ahead of next week’s decision. Thursday brings initial jobless claims, and Friday the preliminary S&P Global PMI for October.
Related: Gold prices rise as dollar weakens and bond yields fall · Gold rises 0.9 percent as dollar weakens and yields fall on Friday
Data: LBMA · FRED — St. Louis Fed
