Safe-haven demand and expectations of rate cuts have sent silver prices soaring to a near four-decade high.
2025-10-10 13:04:50
Spot silver (XAG/USD) continued its strong rise during Asian trading hours on Friday, trading around $49.70 per ounce. Silver prices have remained in a high range for several consecutive trading days, reflecting strong market demand for safe-haven assets.
This round of gains was driven by multiple factors. First, the US government shutdown entered its tenth day, and Congress failed to pass a budget bill by the end of September, leading to increased market anxiety about the economic outlook.
At the same time, the continued fermentation of tariff policies and geopolitical risks has further increased investors' interest in safe-haven assets such as silver.
“Global economic uncertainty has increased significantly, and in this environment, investors tend to turn to physical assets, such as silver,” said Michael DiRienzo, CEO of the Silver Institute.
Secondly, the Federal Reserve's policy expectations have become a major driver of silver prices. According to the CME FedWatch tool, the market currently expects the Fed to have a nearly 95% probability of cutting interest rates by 25 basis points at its October meeting, while the probability of another rate cut in December has slightly dropped to 82%.
Falling interest rates will reduce the opportunity cost of holding non-yielding precious metals, thereby supporting silver prices. Regarding industrial demand, continued growth in silver consumption in the new energy, electronics, and photovoltaic sectors also provides medium-term support. With manufacturing data rebounding, the market expects demand for industrial metals to remain stable.
Silver's technical outlook is clearly strong after breaking through the key resistance level of $49.50 on the daily chart. The moving averages are bullish, and the MACD indicator continues to increase in volume, indicating ample upward momentum. If prices hold above $49.30, they could test the $50 mark and the psychological high of $50.80.
On the contrary, if profit taking occurs, $48.80 will become a short-term support level. Overall, silver prices are in an upward channel. Although there is a risk of adjustment in the short term, the trend is still bullish.
Market analyst Lallalit Srijandorn pointed out: "Silver's rise not only reflects safe-haven buying, but also reflects the market's early pricing of the Federal Reserve's easing cycle. If the interest rate cut is implemented, it is only a matter of time before silver prices break through the $50 mark."
Editor's opinion:
The current rise in silver prices is supported by both macroeconomic and technical factors. Although there may be short-term fluctuations due to fluctuations in the US dollar or consumer confidence data, the combination of safe-haven demand and expectations of interest rate cuts provides a solid bottom line for silver prices.
If the Federal Reserve releases stronger easing signals, silver prices are expected to enter a new upward cycle.
This round of gains was driven by multiple factors. First, the US government shutdown entered its tenth day, and Congress failed to pass a budget bill by the end of September, leading to increased market anxiety about the economic outlook.
At the same time, the continued fermentation of tariff policies and geopolitical risks has further increased investors' interest in safe-haven assets such as silver.
“Global economic uncertainty has increased significantly, and in this environment, investors tend to turn to physical assets, such as silver,” said Michael DiRienzo, CEO of the Silver Institute.
Secondly, the Federal Reserve's policy expectations have become a major driver of silver prices. According to the CME FedWatch tool, the market currently expects the Fed to have a nearly 95% probability of cutting interest rates by 25 basis points at its October meeting, while the probability of another rate cut in December has slightly dropped to 82%.
Falling interest rates will reduce the opportunity cost of holding non-yielding precious metals, thereby supporting silver prices. Regarding industrial demand, continued growth in silver consumption in the new energy, electronics, and photovoltaic sectors also provides medium-term support. With manufacturing data rebounding, the market expects demand for industrial metals to remain stable.
Silver's technical outlook is clearly strong after breaking through the key resistance level of $49.50 on the daily chart. The moving averages are bullish, and the MACD indicator continues to increase in volume, indicating ample upward momentum. If prices hold above $49.30, they could test the $50 mark and the psychological high of $50.80.
On the contrary, if profit taking occurs, $48.80 will become a short-term support level. Overall, silver prices are in an upward channel. Although there is a risk of adjustment in the short term, the trend is still bullish.
Market analyst Lallalit Srijandorn pointed out: "Silver's rise not only reflects safe-haven buying, but also reflects the market's early pricing of the Federal Reserve's easing cycle. If the interest rate cut is implemented, it is only a matter of time before silver prices break through the $50 mark."
Editor's opinion:The current rise in silver prices is supported by both macroeconomic and technical factors. Although there may be short-term fluctuations due to fluctuations in the US dollar or consumer confidence data, the combination of safe-haven demand and expectations of interest rate cuts provides a solid bottom line for silver prices.
If the Federal Reserve releases stronger easing signals, silver prices are expected to enter a new upward cycle.
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