Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Silver edged to yet another record last Friday, this time hitting an intraday high of $59.33 per ounce before settling for a more modest daily close. The white metal gained 3.5% last week, faring much better than other precious metals. Gold and platinum both closed last week in the red, while palladium fell flat as attentions were focused elsewhere. The rise in silver was coupled with strong inflows into exchange-traded funds, as silver-backed ETFs rose by almost 600 tonnes last week – one of the largest weekly additions so far this year. Speculative demand has led to delivery concerns in the London and Shanghai metals markets, with both hubs struggling to keep their vaults full enough to satisfy the relentless demand.
Other precious metals may have been outshined by the performance in silver, but the white metal was not alone in its ascent, finding an unlikely companion in copper, which also rose 3.5% last week to reach $5.35 per pound. Speculation aside, industrial demand is a major contributor to the bid in copper and silver, with some analysts predicting possible supply deficits in 2026.
It was a volatile week for crypto, but despite the swings, Bitcoin once again closed the week above $90,000. The macro landscape has not been kind to cryptocurrencies in recent weeks, which have suffered greatly as a result of the lack of liquidity in financial markets. Moreover, because of the US government shutdown, several pieces of crypto-related legislation failed to make any progress over the past two months, making adoption difficult. Despite the lacklustre price action, a number of crypto ETFs continued to see decent inflows over the last few days, to say nothing of the continued accumulation by Michael Saylor’s Strategy. Many market participants are waiting for this week’s Fed vote before deciding on their next move.
The wait is almost over; the event that everyone has been waiting for is just around the corner. On Wednesday, the FOMC will render its verdict on the dollar for the final time this year. Markets are pricing in a 25-bps rate cut with almost 90% certainty, so traders can expect fireworks should the decision go any other way. The confidence in such an outcome comes from the fact that several committee members have publicly stated that they would back another rate cut, including New York Fed president John Williams in late November. Because of the US government shutdown, the Fed has been starved of information in the run-up to the latest meeting, making the decision particularly difficult. The FOMC appears to be split down the middle going into this week’s meeting, with members on both sides of the aisle being unusually vocal about their intentions. The Fed is typically united in its decisions, but Wednesday’s vote could see up to three dissents, or possibly even more.
Before the main event, markets will receive a couple of minor updates on the health of the US labour market. The weekly ADP employment change will be published on Tuesday, and will be swiftly followed by the latest JOLT survey. Better than nothing, but the data releases are unlikely to sway the Fed either way. On Wednesday, the Bank of Canada will deliver a decision of its own, although traders are thoroughly expecting the body to hold rates on the Canadian dollar steady at 2.25%. The same is true of the Swiss National Bank, which is predicted to maintain a 0% interest rate on the Swiss Franc on Thursday. Later in the day, US PPI data will hit the newswires, although given the timing of the release, it is unlikely to cause much of a splash.
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