US Shutdown & Rising Risks, Silver Strengthens
Silver prices (XAG/USD) rose to around $49.70/oz during the Asian session, holding in positive territory after hitting a four-decade high. The rise was driven by inflows into safe-haven assets amid uncertainty—from the ten-day US government shutdown, tariff concerns, and geopolitical risks. Solid industrial demand (including renewable energy and electronics) also contributed to the rally. Similarly, Silver Institute CEO Michael DiRienzo believes that as economic concerns mount, investors tend to shift to “hard assets” like silver.
Expectations for a Fed interest rate cut also boosted sentiment. The market rates a nearly 95% chance of a 25 bps cut in October, with the chance of another cut in December remaining high, though declining. Lower interest rates reduce the opportunity cost of holding non-yielding silver. Looking ahead, the market awaits U-Mich Consumer Sentiment data and comments from the Fed's Goolsbee and Musalem; stronger-than-expected results could potentially strengthen the US dollar and pressure USD-based commodity prices. (az)
Source: Newsmaker.id
