Silver Price Forecast: XAG/USD rises to near $51.00 due to Fed rate cut odds

• Silver price appreciates as US economic uncertainty reinforces the likelihood of a Fed rate cut in December.
• Fed Governor Stephen Miran suggested a 50-basis-point reduction in December, or at least 25 bps.
• US Senate passes funding bill 60-40 to end 41-day shutdown; measure now moves to House for approval.

Silver price (XAG/USD) gains ground for the third consecutive session, trading around $50.90 per troy ounce during the Asian hours on Tuesday. The non-interest-bearing Silver attracts investors amid growing economic uncertainty in the United States (US), which has fueled expectations of a near-term Federal Reserve rate cut.

Fed Governor Stephen Miran told CNBC on Monday that inflation is easing. Miran reaffirmed that staying on course with rate cuts is appropriate, suggesting a 50-basis-point reduction in December, or at least 25 bps. He added that the economy is not at maximum employment and that all data since September support further easing.

Job losses in October, mainly in the government and retail sectors, and a drop in consumer sentiment to a three-and-a-half-year low in early November have reinforced expectations of policy easing. The CME FedWatch Tool shows markets pricing in a 62% chance of a 25 bps rate cut in December.

The upside of the Silver price could be restrained amid growing hopes that the US government shutdown resolution is nearing. The US Senate passed a funding bill in a 60-40 vote, effectively ending the 41-day shutdown, with eight Democrats joining Republicans to advance the measure, which now moves to the House for approval.

US President Donald Trump, on Monday, backed a bipartisan deal to end the US government shutdown, signaling a likely reopening within days. Senate Majority Leader John Thune said he expects Trump to sign the bill once Congress passes it.