Silver Breaks $48: Dollar Weakens, Bullish Trend Continues
Silver (XAG/USD) continued its bullish trend on Friday, recovering from Thursday's losses, supported by a weaker US dollar. Silver reached a high above $48 as risk-off sentiment persisted as the US government shutdown entered its third day, while the delay in the release of key employment data left market participants relying on alternative indicators that signaled economic weakness. Amid this uncertainty, silver remained supportive as a safe-haven asset, although volatility increased as expectations for Fed policy shifted.
Fundamentally, the prospect of interest rate cuts remains a key driver of interest in non-interest-bearing precious metals like silver, as the opportunity cost of holding these assets decreases when interest rates fall. On the real demand side, industrial demand—particularly for solar panels, electronics, and electric vehicles—serves as a medium-term structural support. However, any strengthening of the US dollar tends to pressure greenback-based prices, while rising short-term yields could restrain capital flows into precious metals.
Looking ahead, market participants are monitoring the US Senate vote on efforts to end the shutdown, the direction of the dollar, and the dynamics of Treasury yields as short-term catalysts. The correlation with gold and developments in global manufacturing activity data will also influence risk appetite and the direction of silver. With a mixed fundamental backdrop—supported by easing expectations but overshadowed by a strong dollar—silver's movement is expected to remain volatile in the short term.
Source: Newsmaker.id
