FX.co ★ Silver Climbs on Safe-Haven Demand

Silver surged past $48 per ounce on Wednesday, nearing levels not seen in 14 years, as worldwide uncertainties coupled with the extended US government shutdown intensified the allure of safe-haven assets. With the shutdown now in its second week and no resolution apparent, the economic outlook appears increasingly bleak, crucial data releases are postponed, and the pressure mounts on lawmakers to broker an agreement. The market anticipates a quarter-point interest rate cut by the Federal Reserve this month, with another cut on the horizon for December. Further compounding investor caution are political upheavals in Europe and Japan, notably following the resignation of France’s prime minister and the election of Sanae Takaichi, an advocate of “Abenomics,” as Japan’s new leader. Additionally, persistent strong physical demand from the solar and electronics industries continues to support prices, with the Silver Institute predicting a global supply shortage for the fifth consecutive year in 2025.