US Shutdown & Fed Expectations Push Silver to 14-Year High
Silver prices (XAG/USD) strengthened on Wednesday, holding above $47 per troy ounce and marking a 14-year high as the precious metal rallied. The December Comex silver contract last traded in the $47.2–48.0 range after briefly hitting an intraday peak above $47.8. The rally coincided with gold's surge to a new record and increased hedging interest. This level was last seen in 2011, when a tight supply rally boosted prices sharply.
The main drivers came from a weakening US dollar and falling bond yields after the official US government shutdown, potentially delaying the release of key economic data such as nonfarm payrolls. This uncertainty reinforced expectations of a Fed rate cut in October, increasing the appeal of non-yielding assets like silver. Furthermore, risk-off sentiment in equity markets led investors to increase allocations to precious metals as a portfolio hedge.
Looking ahead, market participants are monitoring the $47–$49 range as a psychological resistance area, with the potential for a continued rally if the dollar remains under pressure and employment data weakens again. However, volatility remains high; a rapid correction could occur if Fed officials signal hawkishness or the budget impasse is soon resolved. For traders, a buy-on-dips approach with disciplined risk management remains recommended during this news-sensitive price phase.
Source: Newsmaker.id
