FX.co ★ Silver Rises on Safe-Haven Demand

Silver prices advanced towards $51 per ounce on Wednesday, distancing themselves from recent one-week lows. This movement was driven by a selloff in risk assets, including technology stocks and cryptocurrencies, which heightened the appeal of precious metals as safe-haven assets. Additionally, indicators of a weakening US labor market have bolstered expectations for further interest rate cuts by the Federal Reserve. Fed Governor Christopher Waller highlighted increased discussions about layoffs as companies brace for diminished demand and potential productivity improvements from artificial intelligence. Despite this, market sentiment reflects only a roughly 47% probability of a 25 basis point rate cut in December, a significant drop from over a 90% chance just a month prior. On the physical side, silver continues to receive support due to India’s wedding season boosting demand and concerns over possible US tariffs on silver, which add another layer of complexity to the market outlook.