Silver (XAG/USD) recouped its prior losses on Friday, trading around $48.40 per troy ounce during Asian hours. Buyers were drawn in after weaker‐than‐expected U.S. Challenger job‐cuts data boosted the odds of a 25-basis-point Federal Reserve rate cut in December.
Challenger, Gray & Christmas reported that U.S. employers announced more than 153,000 planned layoffs in October—the highest October tally in over 20 years. That figure undercut the optimism from a rebound in ADP payrolls and underscored the ongoing uncertainty in the U.S. labour market. With the government shutdown limiting the release of official data such as Nonfarm Payrolls and the unemployment rate, investors are relying more heavily on private‐sector reports.
Late Thursday, St. Louis Fed President Alberto Musalem warned that inflation risks remain tilted upward. He noted that while tariffs are currently exerting price pressures, their impact should ease next year. Fed funds futures now assign a 67% probability to a December rate cut—up from 62% the previous day, according to the CME FedWatch Tool.
Safe-haven demand for precious metals, including silver, was further supported by the record‐length U.S. government shutdown. The Senate has no vote scheduled on the House-approved funding bill after it failed to advance for the 14th time on Tuesday.
