Spot Silver was set to record its seventh consecutive weekly advance, supported by expectations the Federal Reserve will continue easing its monetary policy this year and concerns over the impact of the US government shutdown.
The latter extended to a second day on Thursday and delayed 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 98% chance of a 25 basis point Fed rate cut in October and an 87.5% chance of another 25 bps cut in December.
Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.
Data by ADP showed this week US private payrolls had decreased by 32,000 in September after a revised down 3,000 drop in August.
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.
Spot Silver was last up 0.85% on the day to trade at $47.39 per troy ounce.
The precious metal has risen 2.96% so far this week.
Meanwhile, Silver futures for December delivery were last up 2.05% to trade at $47.318 per troy ounce.
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