Silver Weakens Slightly, Is the Positive Trend Still Maintained?
Silver came under pressure during the European session on Thursday, although it remained above $52.50/oz after setting a new record earlier this week at $53.6/oz. Sentiment was driven by expectations of a Fed rate cut at the end of October and possibly another in December, in line with Jerome Powell's recent comments on the weakening labor market, which added to the rationale for easing. A weak dollar also supported the precious metal, keeping the XAG/USD uptrend intact.
Demand for safe-haven assets also strengthened amid US-China trade tensions, after both countries imposed tit-for-tat port fees, adding to global supply chain disruptions. Domestically, the US government shutdown entered its third week, heightening macroeconomic uncertainty and driving allocations to gold and silver. This combination of geopolitical and policy factors maintained bids for precious metals despite persistently high market volatility.
On the physical side, India's shopping season leading up to Dhanteras (October 18) and Diwali (October 20) provided a boost: retail silver prices in Chennai reached ₹2 lakh/kg, signaling strong demand ahead of the festival. Looking ahead, market focus is on the FOMC meeting on October 28–29 and updates on trade tensions. Confirmation of the Fed's easing could potentially keep silver within a higher range, while easing risk appetite could trigger a technical pause.
Source: Newsmaker.id
