Silver Breaks $48: Safe Haven On
Wednesday, October 8, 2025 — Silver prices broke through $48/oz and approached a 14-year peak, driven by safe-haven demand amid the protracted US government shutdown. The shutdown entered its second week, delaying key data releases and further clouding the economic outlook. The market also expects the Fed to cut interest rates by 25 basis points this month, with the possibility of further cuts in December—a combination typically favorable for precious metals.
Political turmoil has added to the caution. In France, the resignation of the prime minister heightened fiscal concerns; in Japan, the election of Sanae Takaichi—a supporter of the “Abenomics” policy style—has tempered expectations of rapid BoJ tightening. Fragile global sentiment has investors flocking to safe-haven assets; despite occasional strengthening of the US dollar, interest in silver remains strong.
On the fundamental side, physical demand from the solar and electronics sectors remains strong. The Silver Institute estimates the global supply deficit will continue for a fifth year in 2025, supporting prices. Looking ahead, the market is monitoring the Fed's decision, the direction of the USD and yields, and developments related to the shutdown. The $49-$50 area is seen as the next psychological resistance for XAG/USD. (az)
Source: Newsmaker.id
