Silver Price Drops Sharply While Indian Imports Are Approved

Silver prices plunged to a three-month low, with the decline attributed to intensifying bets on a Federal Reserve rate hike. On the physical demand side, India's government has authorized the import of 6,500 tons of silver over six months to meet demand for the festive season, despite reports of otherwise weak domestic demand in the country.

Central Bank Policies Diverge Amid Shifting Economic Data

The US Dollar regained ground as a stronger-than-expected US jobless claims report supported expectations of continued Federal Reserve hawkishness. In contrast, the European Central Bank is now widely anticipated to hold interest rates steady due to tightening financial conditions, while persistent inflation in the UK has analysts forecasting a potential November rate hike from the Bank of England.

French Fiscal Worries Pressure European Markets

The Euro weakened significantly as concerns over France's fiscal outlook and political uncertainty intensified, causing the country's government bond spreads to widen near crisis-era highs. This fiscal stress is seen as a primary driver of the Euro's retreat against the US Dollar and is contributing to tighter financial conditions that are expected to influence the ECB's policy path.