Following Gold's Rally, Silver Strengthens to 14-Year High
Silver prices (XAG/USD) strengthened on Wednesday, holding above $47 per troy ounce—a 14-year high—as demand for safe-haven assets increased. Silver's rally followed gold's record high of US$3,895, driven by a weakening US dollar and increased caution due to the partial US government shutdown. The December silver contract briefly tested the US$47.8 area before stabilizing in the US$47.2–48.0 range.
Sentiment was also boosted by weak employment data: the ADP report showed a decline in private sector jobs in September, reinforcing expectations of an imminent Fed interest rate cut. The prospect of lower yields boosts the appeal of zero-coupon metals like silver, while a weaker dollar makes prices more affordable for global buyers, adding to the buying pressure for both investment and portfolio hedging.
Looking ahead, the market is monitoring the US$47–49 range as a key technical area; A clear breakout opens the door to US$50, but volatility remains high. The shutdown could delay data releases like nonfarm payrolls, triggering sharp short-term movements. Traders are advised to adopt a buy-on-dips strategy with tight stops, while being wary of corrections if the Fed signals a hawkish turn or the dollar strengthens.
Source: Newsmaker.id
