- Silver price gains as China’s RatingDog Manufacturing PMI fell to 50.6 in October from 51.2 prior.
- Safe-haven demand rises after President Trump announced plans to block China from accessing Nvidia’s top chips.
- Silver may attract buyers due to the prolonged US government shutdown.
Silver price (XAG/USD) recovers its recent losses from the previous session, trading around $48.80 per troy ounce during the Asian hours on Monday. The price of the safe-haven Silver receives support from market caution, driven by the weak Chinese private Manufacturing Purchasing Managers’ Index (PMI) data and renewed US-China trade risks. Traders await the US ISM Manufacturing PMI data due later in the day.
China’s RatingDog Manufacturing PMI declined to 50.6 in October from 51.2 in September. The market forecast was for a 50.9 print. Silver is essential in various industrial applications, such as electronics, solar panels, and automotive components. Given China’s status as one of the world’s largest manufacturing hubs, the country’s industrial demand for Silver is significant.
Meanwhile, US President Donald Trump said he plans to block China from accessing Nvidia’s most advanced semiconductor technology, according to CBS News. His remarks could reignite US-China trade tensions, which had eased after his meeting with Chinese President Xi Jinping last Thursday during the APEC Summit in South Korea.
Silver may also attract buyers as safe-haven flows return due to the prolonged government shutdown, which could fuel economic concerns in the United States (US). The US government impasse has now entered its sixth week with no easy endgame in sight amid a deadlock in Congress on the Republican-backed funding bill.
