Silver Holds Firm Above $47; US Shutdown Boosts Safe-Haven Value
Silver (XAG/USD) held firm around $47.80/oz during the Asian session on Thursday (October 2), continuing its rally after hitting a new record on Wednesday. The US government shutdown following the Senate's failure to pass a short-term funding bill sparked demand for safe-haven assets, increasing the appeal of the white metal amidst the uncertainty.
On the policy front, US Vice President JD Vance warned of potential layoffs if the shutdown continues, which could weaken the labor market and raise expectations of a Fed rate cut. This sentiment was further strengthened after ADP reported that the private sector lost 32,000 jobs in September (expected +50,000), while August's data was revised from +54,000 to -3,000.
The situation is further complicated by the fact that official data, such as initial jobless claims, is not expected to be released this week due to the shutdown. Without a government release, market participants and the Fed will rely more heavily on private data to gauge employment conditions—a factor that maintains interest in silver as a hedge.
Source: Newsmaker.id
