Will US government shutdown add further fuel to silver’s rally?
Concerns over a weakening US labor market, expectations for further Fed rate cuts, and heightened government shutdown risks have fueled sustained demand for silver as a safe haven.
September ADP private payrolls fell by 32,000, the steepest drop since March 2023, while August figures were sharply revised from a 54,000 gain to a 3,000 loss, underscoring labor market softness.
Meanwhile, the shutdown has officially begun after bipartisan talks failed to reach an agreement, with the key uncertainty now being its duration. A shutdown lasting more than a month could have widespread economic repercussions.
XAGUSD sustains its uptrend above EMA21. The diverging EMAs indicate to a potential expansion of bullish momentum. If XAGUSD closes above EMA21, the price may advance toward the psychological resistance at 48.00. Conversely, if XAGUSD breaks below EMA21, the price could retreat toward the support at 46.00.
