FX.co ★ Silver Gains on Dovish Fed Bets

Silver prices climbed to approximately $48.4 per ounce on Friday, as recent gains were bolstered by indications of a cooling labor market in the United States, heightening expectations for interest rate cuts by the Federal Reserve. Recent private sector data revealed that the U.S. economy experienced a reduction of 153,000 jobs in October, marking the highest job loss for October in 22 years, primarily due to cost-cutting measures and the integration of artificial intelligence. This led market participants to increasingly anticipate a rate cut from the Fed in December, with the probability of a 25 basis points reduction now estimated at 70%, up from 62% the previous day. Additionally, the extended U.S. government shutdown hindered the release of official employment and inflation figures, further increasing the demand for precious metals as safe-haven assets. Compounding these trends, significant declines in U.S. technology stocks, triggered by apprehensions regarding overvalued AI investments, contributed additional support to silver. However, despite these influences, silver is set to conclude the week with minimal change following two prior weeks of profit-taking activities.