Fed Expectations & US Shutdown Support Silver Prices
Silver prices (XAGUSD) rose in the European session on Friday, tracking a rally in gold as expectations for a Fed rate cut in December grew. Silver strengthened by about 1.7% to $48.80/oz, while gold also strengthened, as the market considered the likelihood of a rate cut increasing amid weak US employment data and the impact of the government shutdown.
Currency-wise, the dollar index rebounded in Asia following weak Chinese trade data, but remained around 99.8 until the European session—sufficiently restraining the precious metal, although its safe-haven bias remained supportive. Signals from China further weighed on the industrial demand theme: October exports fell 1.1% year-on-year, the worst decline since February, keeping global sentiment cautious.
In Europe, economic indicators were mixed: the latest PMI showed the fastest growth in more than two years, but September retail sales weakened—reflecting an uneven recovery and making risk appetite fragile ahead of the upcoming US data.
Contextually, silver is still trading near historical highs after hitting a record above $51/oz in October; This high initial positioning maintains high volatility if the USD strengthens again or the industrial demand outlook worsens.
Source: Newsmaker.id
