Silver is trading in a high range (the December COMEX contract is around $48–49/oz) as risk-off sentiment spreads and the US dollar weakened. The sharp rise in Challenger job losses in October boosted market confidence that the Fed could cut interest rates sooner, boosting interest in the precious metal. However, silver's rally has tended to be more subdued than gold's because silver is also highly dependent on the industrial cycle.

From a fundamental perspective, the medium-term market balance remains tight: The Silver Institute expects a continued supply deficit into 2025, despite thrifting (reduced usage per panel) in the solar industry. PV remains a key driver, but panel manufacturers continue to reduce silver content to offset high prices—this could restrain physical demand if the global economy slows.

Going forward, silver's direction will be determined by a combination of macro factors (dollar direction and US Treasury yields), the pace of the Fed's interest rate cuts, and industrial demand indicators (solar/electronics). Recent investment bank projection revisions—which raised the average silver price forecast for 2025—indicate that sentiment remains positive, but the market is sensitive to news of a manufacturing slowdown. Investors are monitoring non-governmental U.S. data during the prolonged shutdown, as well as comments from Fed officials, to gauge the duration of silver's safe-haven momentum. (az)

Source: Newsmaker.id