- Silver prices reached a new peak of $47.57 on Wednesday.
- Non-2 silver has been bought as recent US employment figures boost hopes for additional Fed rate cuts.
- US federal funds expired at 4:00 GMT on Wednesday, prompting government shutdowns.
Silver Price (XAG/USD) is currently up by more than 1%, trading around $47.15 per troy ounce. The price of silver climbed to a fresh high of $47.57 early Wednesday during Asian trading hours. Recent employment statistics from the US are increasing expectations of further cuts by the Federal Reserve, which benefits non-interest-holding silver.
The latest figures show that while the labor market is slowing down, job vacancies actually grew from 7.21 million to 7.23 million in August. However, the employment rate dipped to 3.2%, the lowest since June 2024, though layoffs have remained low.
Silver priced in dollars is attracting buyers due to the struggles of the US dollar amidst increased anticipation of Fed rate cuts. According to the CME FedWatch tool, the market is almost 97% certain of a rate cut in October, with a 76% chance of another decrease in December.
At the moment, the US Dollar Index (DXY), which gauges the value of the dollar against six major currencies, is hovering around 97.80. Traders may want to keep an eye on upcoming US ADP employment and ISM manufacturing PMI data later in September.
Rising demand for safe haven assets is supporting silver prices in light of concerns about impending US government shutdowns. Federal funds are expected to expire at 4:00 GMT on Wednesday, putting around 750,000 federal employees at risk of furlough due to Congress’s inability to pass a funding bill. The U.S. Labor Bureau indicated on Monday that its statistical agency would halt data releases, including the closely watched monthly employment reports, in the event of a partial shutdown.
