Forex News
- Indian Rupee extends its upside against the US Dollar as oil prices retreat significantly.
- The US signals that it prefers diplomatic resolution with Iran over resuming military action.
- Investors shift their focus to US midterm elections.
The Indian Rupee (INR) extends previous trading day’s gains against the US Dollar (USD) on Monday on the back of a sharp correction in oil prices. As of writing, the USD/INR pair is down 0.23% to near 94.72.
At the start of the week, the MCX Crude Oil contract expiring on November 19 is significantly down, almost 4% to near Rs. 9,545. The oil price has corrected from its multi-month high of Rs. 9,972 posted on Friday.
A corrective move in oil prices bodes well for currencies from economies, such as India, which rely heavily on oil imports to meet its energy needs.
What led to the significant correction in oil prices?
Oil prices open sharply lower on renewed hopes of a diplomatic resolution between the United States (US) and Iran.
Over the weekend, US Secretary of State Marco Rubio said that Washington hasn’t made any decision to renew strikes on Tehran and that President Donald Trump prefers a diplomatic resolution. However, Rubio warned that the US retains the capabilities to achieve whatever military objective Trump decides to pursue.
The indication from the US that it is ready for peace rather than pursuing joint military action with Israel after midterm elections, as previously stated, has eased fears of prolonged energy supply risks.
Meanwhile, the comments from Iran that it can reopen the Strait of Hormuz, a vital passage to almost 20% of global energy supply, has also diminished fears of energy supply risks.
Iran’s Foreign Minister Abbas Araghchi said talks are ongoing with Qatari mediators on a plan to reopen the Strait of Hormuz within two days if the US cooperates, Al Jazeera reported.
US midterm elections – key trigger for US Dollar
This week, the major trigger for the US Dollar and even global markets will be US midterm elections on Tuesday.
Analysts at ING argue that political risk around the upcoming US midterm elections is now the key near-term driver for the Dollar. They highlight that “the main risk for the dollar today is some precautionary unwinding of net-long positions ahead of Tuesday’s US midterm elections,” with positioning vulnerable to a shift in the political landscape.
ING notes that “a Democratic sweep is trading around 68% in prediction markets,” and warns this outcome “could be seen as slightly negative for the US dollar from a few angles, from higher risk of government shutdown and gridlock on debt ceiling negotiations to potential damage to already shaky AI-related sentiment.” Against that backdrop, the bank concludes that investors should avoid becoming overly optimistic on the greenback in the very short term, stating: “We’d be cautious in chasing the USD upside in the next few days.”
Technical Analysis: USD/INR sees more downside towards 94.30
USD/INR declines to near 94.70 on Monday. The pair reflects a bearish near-term tone as spot remains below the 20-day Exponential Moving Average (EMA) at 95.23.
The pair continues to be pressured by this short-term EMA acting as immediate overhead supply, while the Relative Strength Index (14) around 40 suggests subdued momentum without reaching oversold extremes, hinting at further downside risk.
On the topside, initial resistance is located at the 20-day EMA near 95.23, which would need to be decisively overcome to ease the current bearish bias and open the way for a broader recovery. On the downside, the September low at 94.28 would act as a key demand zone for the pair.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Economic Indicator
US Midterm Elections
The members of the United States Congress are elected for 4 years period usually 2 years after the President election. This year, 435 members to the US House of Representatives and 35 members to the US Senate. In addition, 39 states will elect Governors, while minor political charges will also be refreshed in local elections.
Read more.Next release: Tue Nov 03, 2026 05:00
Frequency: Irregular
Consensus: -
Previous: -
Source: US House of Representatives
- NZD/USD drops to near 0.5620 as the US Dollar recovers some early losses.
- Investors brace volatility ahead of US Midterm elections.
- The NZ Unemployment Rate is seen dropping to 5.5% in the third quarter this year.
The New Zealand Dollar (NZD) trades lower against the US Dollar (USD) at around 0.5620 during the European trading session on Monday. The Kiwi pair is under pressure as the US Dollar claws back some of its early losses, but is still under pressure ahead of United States (US) Midterm elections on Tuesday.
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.44% | -0.18% | 0.25% | 0.02% | 0.33% | 0.15% | -0.60% | |
| EUR | 0.44% | 0.27% | 0.67% | 0.45% | 0.77% | 0.59% | -0.13% | |
| GBP | 0.18% | -0.27% | 0.45% | 0.19% | 0.50% | 0.33% | -0.39% | |
| JPY | -0.25% | -0.67% | -0.45% | -0.22% | 0.08% | -0.11% | -0.84% | |
| CAD | -0.02% | -0.45% | -0.19% | 0.22% | 0.32% | 0.12% | -0.58% | |
| AUD | -0.33% | -0.77% | -0.50% | -0.08% | -0.32% | -0.18% | -0.90% | |
| NZD | -0.15% | -0.59% | -0.33% | 0.11% | -0.12% | 0.18% | -0.71% | |
| CHF | 0.60% | 0.13% | 0.39% | 0.84% | 0.58% | 0.90% | 0.71% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.3% lower to near 101.70 even after recovering some losses from its intraday low of 101.43.
Dollar outlook clouded as US midterm odds point to Democrat sweep
ING’s Chris Turner flags the US midterm elections as the key event risk for FX this week, noting that betting markets now give the Democrats a “70-72% chance of taking both the House and the Senate.” He argues that “one could make the case that the Dollar should come lower on such an outcome,” as a Democrat clean sweep would likely “lead to gridlock on the debt ceiling, a prolonged government shutdown next year and could encourage President Trump to pursue an even more activist foreign policy agenda.” Against that backdrop, Turner suggests investors will be weighing these political risks against the still-supportive mix of strong US growth, above-target inflation and ongoing Fed tightening for the Dollar and DXY around the 102.00 area.
Later in the day, investors will focus on the US ISM Manufacturing PMI data for October, which will be published at 15:00 GMT.
On the New Zealand (NZ) front, investors await the Q3 labor market data, which will be released on Wednesday. The Unemployment Rate is seen lower at 5.5% from the previous reading of 5.6%.
NZD/USD Technical Analysis
In the daily chart, NZD/USD trades at 0.5623, maintaining a bearish near-term bias as spot holds beneath the 20-day Exponential Moving Average (EMA) at 0.5655. The pair continues to grind lower after failing to sustain the brief recovery seen in mid-October, with the price action constrained under the short-term EMA, which hints at persistent selling pressure.
The 14-day Relative Strength Index (RSI) at around 41 remains below the neutral 50 line, suggesting subdued upside momentum rather than outright oversold conditions.
On the topside, immediate resistance is located at the 20-day EMA near 0.5655, and a daily close above this barrier would be needed to ease the current bearish tone and open the way for a more meaningful corrective bounce. Looking down, the October 14 low at 0.5564 is the critical support level; below that the pair could enter a fresh downside leg.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Economic Indicator
Unemployment Rate
The Unemployment Rate released by Statistics New Zealand is the percentage of unemployed workers in the total civilian labor force. If the rate goes up, it indicates a lack of expansion within the New Zealand labor market and weakness in the New Zealand economy. Generally, a decrease in the figure is seen as bullish for the New Zealand Dollar (NZD), while an increase is seen as negative bearish.
Read more.Next release: Tue Nov 03, 2026 21:45
Frequency: Quarterly
Consensus: 5.5%
Previous: 5.6%
Source: Stats NZ
Statistics New Zealand releases employment data on a quarterly basis. The statistics shed a light on New Zealand’s labor market, including unemployment and employment rates, demand for labor and changes in wages and salaries. These employment indicators tend to have an impact on the country’s inflation and Reserve Bank of New Zealand’s (RBNZ) interest rate decision, eventually affecting the NZD. A better-than-expected print could turn out to be NZD bullish.
OCBC strategists Sim Moh Siong and Christopher Wong note they raise their Brent forecasts, projecting USD100/bbl at end-2026 and USD85/bbl at end-2027 as months of Middle East disruption erode market buffers. Despite recovering Gulf exports, depleted inventories, stretched logistics and persistent shipping risks point to transportation bottlenecks and higher freight costs, reinforcing a higher-for-longer Oil price environment and wider Brent–WTI spreads.
Market buffers running thin
"We raise our end-2026 Brent forecast to USD100/bbl from USD85 and end-2027 to USD85 from USD75. The shift is less about greater conviction on how the US-Iran conflict ends and more about responding to today’s tighter market. Brent remains above USD110/bbl despite a recovery in Gulf exports."
"Escalation is not inevitable, but the market has less capacity to absorb another shock. Months of disruption have drawn down inventories, tightened tanker availability, stretched alternative export routes and depleted refined-product stocks. Renewed attacks on shipping or regional energy infrastructure could therefore have an outsized price impact."
"The bottleneck is increasingly transportation, not production. Longer voyages, security risks and disrupted routes tie up vessels, reducing effective tanker capacity and pushing freight costs higher. Oil may still be flowing, but it is becoming slower and more expensive to move."
"That matters most for refined products. Higher freight costs disrupt trade flows and raise replacement costs, reinforcing tight diesel markets and supporting cracks. For Brent-WTI, higher transatlantic freight can widen the spread as WTI must trade at a deeper discount to remain competitive in Europe."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- GBP/USD tests support at previous highs around 1.3430 after being capped just below 1.3450.
- UK S&P Global Manufacturing PMI confirmed that the sector grew at its fastest pace in the last five months in October.
- The US Dollar remains moderately offered with all eyes on the US midterm elections.
The British Pound (GBP) holds moderate gains against the US Dollar (USD) on Monday but has eased from the two-week highs hit earlier in the day, despite the confirmation of solid UK manufacturing activity in October. The GBP/USD is testing support at previous highs in the 1.3420 area as of writing, down from session highs a few pips shy of 1.3450.
Earlier in the day, the UK final S&P Manufacturing Purchasing Managers' Index (PMI) confirmed preliminary data showing that the sector’s activity grew at a 52.8 pace in October, its strongest reading in five months, from 51.9 in September.
These figures endorse hopes that the Bank of England will hike its Bank rate by a quarter-point, to 4.0% after its monetary policy meeting on Thursday. The question, though, is what comes next, as the bank’s committee is split on further monetary policy tightening and Governor Bailey has shown a tendency to play down inflation pressures in previous months.
US mid-term election risks seen as a modest headwind for Dollar
Elsewhere, the US Dollar is coming up from session lows, although it remains moderately offered on Monday, with lower Oil prices triggering a mild risk-on mood, while uncertainty about the outcome of US elections poses a significant headwind.
Analysts at MUFG/BTMU note that the latest odds from Polymarket show “high expectations that the Republicans will lose control of Congress, and the Democrats could even take both the House and Senate.” MUFG/BTMU experts also add that “losing control of the House and Senate would effectively leave President Trump as a lame duck,” and that a “damaging defeat for the Republicans could put a dampener on US Dollar strength,” although “we don’t expect it to be a game changer on its own.”
Before that, the US ISM Manufacturing PMI, due later on Monday, is expected to show that business activity accelerated moderately in October, with the prices subindex moderating at high levels. These figures strengthen the case for strong US economic growth and are likely to put a floor on the US Dollar's weakness.
Economic Indicator
S&P Global Manufacturing PMI
The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by S&P Global, is a leading indicator gauging business activity in the UK’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Pound Sterling (GBP). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for GBP.
Read more.Last release: Mon Nov 02, 2026 09:30
Frequency: Monthly
Actual: 52.8
Consensus: 52.8
Previous: 52.8
Source: S&P Global
Economic Indicator
ISM Manufacturing PMI
The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The indicator is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. Survey responses reflect the change, if any, in the current month compared to the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). A reading below 50 signals that factory activity is generally declining, which is seen as bearish for USD.
Read more.Next release: Mon Nov 02, 2026 15:00
Frequency: Monthly
Consensus: 54.6
Previous: 54.5
Source: Institute for Supply Management
The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) provides a reliable outlook on the state of the US manufacturing sector. A reading above 50 suggests that the business activity expanded during the survey period and vice versa. PMIs are considered to be leading indicators and could signal a shift in the economic cycle. Stronger-than-expected prints usually have a positive impact on the USD. In addition to the headline PMI, the Employment Index and the Prices Paid Index numbers are watched closely as they shine a light on the labour market and inflation.
ING strategists Warren Patterson and Ewa Manthey note that Gold fell to a one-year low late last week as surging Oil prices fueled inflation concerns and expectations of higher-for-longer interest rates. Technology share losses added to selling pressure as investors liquidated positions to cover losses elsewhere. Although Gold has since rebounded, the strategists warn that elevated energy costs, rate expectations and broader market liquidation risks remain key headwinds for precious metals.
Precious metals under macro pressure
"Gold fell to its lowest level in a year at the end of last week as oil prices surged amid inflation concerns and expectations that interest rates could stay higher for longer. Prices dropped 3.65% to $3,874.62/oz, with the sell-off in technology shares adding to pressure as investors reduced positions to cover losses elsewhere."
"For now, higher energy prices, rate expectations and the risk of further liquidation across broader markets remain headwinds for precious metals."
"Silver has been hit harder, sliding more than 6% and extending its October decline to roughly 18%. The widening gold-silver ratio also points to gold continuing to outperform silver during the latest precious-metals correction."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Societe Generale strategists note that AUD/USD has rebounded from a multi-month ascending trend line near 0.6900 and is holding above 0.7000 ahead of the Reserve Bank of Australia's (RBA) policy decision. The pair faces resistance at 0.7050/0.7080, while a move above its 200-day moving average could strengthen the recovery. Conversely, a break below 0.7000 could expose further downside towards 0.6900 and 0.6860/0.6830.
RBA decision and technical levels
"Spot steadies above 0.70 handle ahead of RBA decision tomorrow."
"AUD/USD has bounced after defending a multi-month ascending trend line near 0.6900."
"The pair has reached the confluence of the 50-DMA and the 200-DMA at 0.7050/0.7080, which represents an interim resistance zone."
"All else being equal in stocks and metals, an upgrade should in theory be a fillip for AUD/USD and nudge the pair back above the 200dma (0.7066)."
"It will be important to observe whether it can overcome this hurdle. Last week's low at 0.7000 is the first support. A break below this could trigger a deeper down move."
"In that scenario, the next supports could be located at the ascending trend line near 0.6900 and the March low at 0.6860/0.6830."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- USD/JPY keeps wavering between 157.00 and 158.00, lacking a clear bias.
- Finance Minister Katayama reiterated Tokyo's commitment to support the Yen on Monday.
- The US Dollar remains on its back foot, with investors awaiting Tuesday's US midterm elections.
The Japanese Yen (JPY ) keeps looking for direction, unable to take advantage of a moderate US Dollar (USD) weakness on Monday, as markets brace for the US midterm elections. The USD/JPY keeps hesitating within previous ranges around 157.00 as the Bank of Japan (BoJ) cast doubt on the timing of the next interest rate hike after keeping monetary policy unchanged on Friday.
Earlier on Monday, the Japanese Finance Minister, Satsuki Katayama, reiterated that Tokyo is ready to respond if currency market movements become disorderly, and reminded of the agreement with the US to stem excessive JPY weakness. The impact of these comments on the Yen, however, has been minimal.
On Friday, the JPY reacted with moderate declines to the Bank of Japan’s monetary policy decision and Governor Ueda's press release on Friday. The BoJ left its benchmark interest rates unchanged at 1.25% as widely expected, but Ueda conditioned next interest rate hikes on developments in FX, IA, and the Middle East conflict, casting doubt on a December rate hike, and weighing on speculative support for the JPY.
Dollar momentum fades as Fed tone softens and US political risks loom
Regarding the USD, Analysts at MUFG observe that the US Dollar’s recent loss of momentum is being driven by a combination of softer policy signals from the Fed and rising political uncertainty. “A damaging defeat for the Republicans could put a dampener on US dollar strength, but we don’t expect it to be a game changer on its own,” says MUFG in a note, also warning that it “would limit room for further fiscal stimulus and could increase market attention on the potential for less market-friendly policies beyond the current Presidency.”
On the market side, MUFG points out that “the Fed’s policy update was less hawkish than expected, and AI-related US equities came under renewed selling pressure,” which has brushed off some of the US Dollar's shine. They highlight that “the 2-year US Treasury yield has fallen by almost 40bps from the high at the end of September,” and state that “market participants will be watching closely this week’s Quarterly Refunding Announcement from the US Treasury,” which could further influence Dollar dynamics and broader rate expectations.
US midterm elections FAQs
The US midterm elections are the federal elections held halfway through a president's four-year term. Voters choose all 435 members of the House of Representatives, about one-third of the Senate, and, in many states, governors and other state and local officials.
Election Day is Tuesday, November 3, 2026. Federal law sets it as the Tuesday after the first Monday in November. Early voting and mail voting are already under way in many states.
They decide which party controls each chamber of Congress for the last two years of President Donald Trump's term. The majority party sets the legislative agenda, chooses committee leaders and, in the Senate, controls confirmations of judges and senior officials.
No. The president is elected every four years; the next presidential election is in November 2028. Midterms are often seen as a referendum on the sitting president's party, which historically tends to lose House seats.
Most analysts expect a modest, short-lived reaction in the US Dollar rather than a lasting trend. A divided Congress is widely seen as the base case and is partly priced in. Treasury yields may react more noticeably to the results. Outcomes that raise expectations of fiscal stimulus tend to lift yields and the US Dollar, while gridlock that limits new spending can pull both lower. Political friction, such as funding or debt-ceiling standoffs, can also briefly lift the Dollar as a safe haven. Over six to twelve months, growth and Federal Reserve policy matter more than the vote.
US stocks have historically been weak before midterms and strong after them. Since 1950, the S&P 500 has been higher 12 months after every midterm election, 19 out of 19, with an average gain of about 15%. Analysts link the pattern to uncertainty fading once results are known. Past performance does not guarantee future returns, and some strategists note that high valuations in 2026 could test the streak.
Markets have often welcomed a divided government because gridlock makes sweeping changes to taxes, spending and regulation less likely. Under a Republican president, the S&P 500 has historically done well in years following midterms that split control of Congress. The risks are funding deadlines, debt-ceiling fights and congressional investigations, which can add short-term volatility.
- EUR/CAD gains strength after Germany's October Manufacturing PMI was confirmed at 54.2, signaling robust expansion.
- German Retail Sales plunged 2.0% MoM in September, missing expectations of a 0.4% gain as spending weakened.
- Falling oil prices driven by OPEC+'s decision to hold December output targets steady could weigh on the Canadian Dollar.
EUR/CAD gains over 0.5% after registering modest gains the previous day, trading around 1.5680 during Asian hours on Monday. The currency cross rises as the Euro (EUR) remains stronger following the release of German economic data.
The S&P Global Germany Manufacturing PMI was confirmed at 54.2 in October, the second-highest for almost four-and-a-half years, just behind August's recent peak, and compared to 53.9 in September. German Retail Sales, a key measure of consumer spending, dropped by 2.0% MoM in September, compared to a rise of 1.2% in August (revised from 1.3%). This figure came in weaker than the market expectations of a 0.4% rise. On an annualized basis, Retail Sales came in at -2.3% in September, versus a 0.3% decline prior (revised from -0.4).
The EUR/CAD cross rises as the commodity-linked Canadian Dollar (CAD) could face headwinds from falling oil prices. Crude prices declined following an agreement by OPEC+ to maintain steady oil production targets for December, keeping required production at September levels. Under this arrangement, Saudi Arabia’s allocation is set at 10.478 million barrels per day (bpd), followed by Russia at 9.949 million bpd and Iraq at 4.431 million bpd.
Meanwhile, crude oil prices also faced downward pressure as investors weighed ongoing diplomatic efforts to end the Middle East conflict against fears of renewed US military action against Iran. Qatari and Iranian officials continued their discussions for a third consecutive day, seeking an agreement to end the war ahead of the US midterm elections.
Energy surge compounds market stress as investors question AI trade
Strategists at Deutsche Bank highlight that the past month was marked by a confluence of pressures, as “investors grappled with mounting doubts around the AI trade, French sovereign stress, and higher energy prices.” In their review, they note that Brent crude “(+13.6%) extended its rise amid concerns over renewed US-Iran escalation,” underscoring how geopolitical tensions have fed directly into the energy complex. At the same time, European gas markets tightened, with “European natural gas [rising] above €100/MWh for the first time since 2022,” adding another layer of strain to an already challenging backdrop for risk assets.
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $50.38 per troy ounce, up 2.54% from the $49.13 it cost on Friday.
Silver prices have decreased by 29.13% since the beginning of the year.
Unit measure | Silver Price Today in USD |
|---|---|
Troy Ounce | 50.38 |
1 Gram | 1.62 |
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 77.41 on Monday, down from 78.87 on Friday.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
(An automation tool was used in creating this post.)
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