Shutdown vs. Safe Haven: Silver's Tug-of-War
Silver weakened early in the Asian session, hovering near $48.45 after briefly touching a 14-year high. The strengthening US dollar—along with rising US bond yields—made USD-denominated commodities more expensive for overseas buyers, pressuring silver prices. However, global uncertainty and hopes for a Fed interest rate cut have the potential to limit further declines.
"Safe haven" sentiment remains strong as the US government shutdown enters its seventh day, with the Senate failing to pass a budget bill, delaying key economic data such as the September employment report.
US President Donald Trump also stated that his government will begin laying off federal workers. On the policy front, expectations of a Fed interest rate cut also support silver: lower interest rates reduce the opportunity cost of holding non-yielding assets. The market is currently pricing in a 25 bps cut in October (≈95%) and December (≈83%) according to CME FedWatch.
The price of silver at the time of this analysis was released was $48,570.
- Buy if the price moves within the $48,870 range.
- Sell if the price moves within the $48,270 range.
Resistance 2: $49,470
Resistance 1: $49,170
Support 1: $46,970
Support 2: $46,670
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
