Spot Silver extended gains to a fresh 14-year high of $47.56/oz. on Wednesday, since the US government shutdown fueled demand for safe-haven metals after lawmakers did not secure a temporary funding deal.
As a result, hundreds of thousands of federal workers will be furloughed and essential services – halted. A long shutdown could delay crucial economic data, including Friday’s Non-Farm Payrolls report, ahead of the upcoming Federal Reserve policy meeting.
Markets are now pricing in about a 94% chance of a 25 basis point Fed rate cut in October and a 74% chance of another 25 bps cut in December.
Also boosting Silver, the US Dollar Index was last down 0.26% to 97.542.
At the same time, the JOLTS report on Tuesday revealed marginal growth in US job openings in August, coupled with a drop in hiring.
Additionally, robust industrial demand continued to support Silver prices amid supply constraints. Silver is facing its fifth successive year of a structural market deficit, with output of 844 million ounces well short of demand.
The metal plays a crucial role in solar energy, electronics and broader electrification efforts.
Spot Silver was last up 0.57% on the day to trade at $46.91 per troy ounce.
Meanwhile, Silver futures for December delivery were last up 0.91% to trade at $47.063 per troy ounce.
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