Silver price (XAG/USD) continues its winning streak for the fifth successive session, nearing the all-time high of $54.86, recorded on October 16. During the early European hours on Thursday, silver was trading around $54.00 per troy ounce.
The upside potential for this safe-haven metal could be limited as market sentiment improves amid the end of the United States (US) government shutdown. On Thursday, US President Donald Trump signed the government funding bill, marking the official end of the longest government shutdown in US history. The bill requires the government to resume normal operations and calls for direct payments to individuals for healthcare purchases.
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. The ADP Employment Change report on Tuesday indicated an average weekly job loss of 11,250 in the four weeks leading up to October 25.
However, the likelihood of a Federal Reserve rate cut in December has diminished following recent hawkish comments from Fed officials. 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% just 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.
Overall, while silver continues to perform strongly, ongoing economic developments and Fed policy signals suggest a cautious outlook for further gains in the near future.
https://bitcoinethereumnews.com/finance/xag-usd-remains-near-54-00-due-to-improved-market-sentiment/
