After U.S. inflation exceeded forecasts in October, FXStreet reported silver at $51.23 an ounce, down 3.97% on the day at 12:41:23 p.m. ET (17:41:23 GMT), as markets weighed a possible December Federal Reserve rate increase.
The Consumer Price Index (CPI) rose 0.6% in September and 0.4% in October, the U.S. Bureau of Labor Statistics (BLS) reported. Excluding food and energy, the October reading was 0.3%, compared with the 0.2% rise expected in a Reuters survey. The core measure’s monthly increase had also been 0.3% in each of the two preceding months.
CME Group said Treasury yields climbed and the dollar strengthened after the release. Its FedWatch Tool showed an 85.3% chance of a December rate increase. FXStreet separately reported an 89.2% probability of a 25-basis-point increase and a 10.8% chance of a 50-basis-point move. The reports did not explain the difference between their estimates.
FXStreet linked silver’s decline to the firmer dollar and higher yields. The outlet said higher yields can make income-bearing assets more attractive by comparison with silver, which pays no interest.
Before the CPI release, Federal Reserve Governor Christopher J. Waller said he leaned toward a 25-basis-point increase in December and that officials should consider a 50-basis-point move if core CPI came in around 0.3% or higher. Dallas Fed President Lorie Logan said the Federal Open Market Committee (FOMC) needed at least two more quarter-point increases and might move faster this winter. Both officials were expressing personal views, not announcing committee policy.
The BLS did not publish year-over-year rates for indexes without a comparable October 2025 reading. It said it had not collected October 2025 survey data during a lapse in appropriations. The Fed held its target range at 3.75% to 4% on Oct. 28. Its next scheduled meeting is Dec. 8-9.
