Silver dropped sharply on Tuesday after U.S. consumer price data for October came in above forecasts, adding to expectations that the Federal Reserve will raise interest rates at its December meeting. Spot silver traded near $51.41 an ounce in late U.S. trading, down $1.89, or 3.55 percent, according to Kitco News. Gold also fell, losing $107.60, or 2.60 percent, to about $4,031.80, with silver facing heavier selling than gold.
The Bureau of Labor Statistics reported that headline CPI rose 0.4 percent from September on a seasonally adjusted basis, compared with a forecast of 0.3 percent. Core CPI, which strips out food and energy, rose 0.3 percent against expectations of 0.2 percent. Shelter accounted for more than 30 percent of the monthly gain, while energy prices rose 0.7 percent following a 5.2 percent jump in September.
Futures markets after the report priced an 88.2 percent chance of a quarter point hike at the Fed's December 8 and 9 meeting and an 11.8 percent chance of a half point move. The Fed held its target range at 3.75 percent to 4.00 percent in October. Treasury yields climbed, with the 10-year yield briefly topping 5.00 percent and the 2-year yield gaining about 18 basis points, while the dollar strengthened.
The data followed a strong October jobs report released on November 6, which showed payrolls rising by 165,000 against expectations near 65,000 and unemployment easing to 4.1 percent. Kitco's technical levels put silver support at $51.27 and $51.00, with resistance at $53.42 and $54.64.
Traders are next watching weekly jobless claims on Thursday and the October producer price index on Friday.
Source: Kitco News -- https://www.kitco.com/news/article/2026-11-10/gold-silver-plunge-hotter-us-inflation-raises-prospect-larger-fed-rate-hike