Silver Prices Drop, But Still Post Seventh Weekly Gain
Silver prices fell below $47 per ounce on Friday, but remained on track for a seventh consecutive weekly gain. This decline occurred despite market sentiment still supported by expectations that the US Federal Reserve (the Fed) will cut interest rates in the near future.
The latest economic data from the US further strengthens market confidence that the Fed will cut interest rates by 25 basis points this month, and possibly another in December. Meanwhile, uncertainty stemming from a potential government shutdown has made investors increasingly cautious about the country's economic conditions and fiscal policy.
The government shutdown also impacted the availability of economic data, as the US Department of Labor had to delay the release of its September employment report. This has heightened market concerns about inflation and a weakening US labor market.
In addition to macroeconomic factors, silver prices are also supported by supply-side support. The Silver Institute estimates that the global silver market will experience a deficit for the fifth consecutive year by 2025, meaning demand will outstrip supply—which could drive prices up in the long term. (ads)
Source: Newsmaker.id(ads)
Source: Newsmaker.id
