Silver price (XAG/USD) is hovering near the new 14-year high of $ 47.83 on Wednesday, trading around $ 47.50 per troy ounce on Thursday during early European hours. The United States (US) government may appreciate further crude oil prices amidst an increase in safe demand after government shutdown. Shutdown puts thousands of federal jobs at risk, as the partisan partition stopped the Congress and the White House from reaching a funding agreement.
The US Bureau of Labor Statistics has stopped almost all activities, which may delay the September US Nonform Panels (NFP) report, which may occur on Friday. Meanwhile, the US ADP Employment Change report released on Wednesday showed that private sector parols declined by 32,000 in September, while the annual increment was 4.5%. The figure came below the expectation after the 3,000 decrease reported in August (amended by an increase of 54,000) and the market of 50,000.
Non-Boy-bearing attracts silver buyers as the weakness of the labor market further bets on the Federal Reserve (Fed) rate cut. CME Fedwatch Tool shows that markets are now pricing 99% of the fed rate cut in October and 87% of another reduction in December.
The silver price also receives support from supplies concerns, as the Silver Institute estimated the global market deficit for the fifth consecutive year in 2025, with an output forecast 844 million ounces, about 100 million ounces of demand. Additionally, India doubled its imports of precious metals including silver in August to September from August to September, as banks and jewelers raced to build inventions before festivals and escape from high imports, Reuters trade and government sources.
Silver questions
Silver is a precious metal that does excessive trading among investors. It has historically used as a means of stocks and exchange of exchange. Although gold is less popular than gold, traders can turn to silver to diversify their investment portfolio, for its internal value or as a possible hedge during the high-stake period. Investors can buy physical silver, trade it in coins or in bar, or through vehicles such as exchange traded funds, which track its price on international markets.
Silver prices may proceed due to a wide range of factors. The price of silver may increase due to geopolitical instability or a deep recession fears due to its safe-horn position, although somewhat compared to gold. As a yield property, silver grows with low interest rates. Its gait also depends on how the US Dollar behaves as the property is priced at dollars (XAG/USD). A strong dollar goes to maintain the price of silver in the Gulf, while a weak dollar prices are likely to increase. Other factors such as investment demand, mining supply – silver is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in industry, especially in areas such as electronics or solar energy, as it has one of the highest electrical conductivity of all metals – more than copper and gold. Increase in demand may increase prices, while the decline reduces them. Mobility in the US, Chinese and Indian economies can also contribute to value swings: for the US and especially China, their large industrial areas use silver in various processes; In India, the demand of consumers for precious metal for jewelery also plays an important role in determining prices.
Silver prices follow gold moves. When gold prices rise, silver usually follows the suit, as they have the same position as a safe-horn property. The ratio of gold/silver, which reflects the number of silver ounces equal to the value of an ounce of gold, can help determine the relative evaluation between the two metals. Some investors may assume a high ratio as an indicator that silver has not been evaluated, or gold is overwelled. Conversely, a low ratio may suggest that gold is underwelled relative to silver.
