- Silver price remains steady near record high of $54.86 after intraday gains.
- The grey metal could limit its upside due to improved market sentiment following the end of the US government shutdown.
- The precious metal advanced amid uncertainty surrounding the US economic outlook and the Fed’s stance.
Silver price (XAG/USD) continues its winning streak for the fifth successive session, nearing the all-time high of $54.86, which was recorded on October 16, and is currently trading around $54.00 per troy ounce during the early European hours on Thursday.
The upside of the safe-haven Silver could be limited as market sentiment improves amid the end of the United States (US) government shutdown. US President Donald Trump signed the government funding bill on Thursday, marking the official end of the longest government shutdown in US history. The bill requires the Government to resume normal operations and call for direct payment for individuals to purchase healthcare.
The non-interest-bearing Silver gained support amid uncertainty over the US economic outlook and Federal Reserve (Fed) policy direction. Weaker-than-expected private labor data for October strengthened expectations of potential Fed policy easing, as the ADP Employment Change report on Tuesday indicated an average weekly job loss of 11,250 in the four weeks to October 25.
However, the likelihood of the Federal Reserve (Fed) rate cut in December faded following recent hawkish Fedspeak. The CME FedWatch Tool shows markets pricing in nearly a 60% chance of a 25-basis-point Fed rate cut in December, down from 67% a day ago.
Atlanta Fed President Raphael Bostic addressed economic trends at the Atlanta Economic Club on Wednesday. Bostic cautioned that easing policy too soon could “feed the inflation beast,” while noting that a sharp downturn in the labor market is unlikely in the near term.
