Silver Price to Increase Further on Global Risks Despite Stronger USD

Silver has been displaying strength recently, continuing to make new highs this month, while Gold is consolidating September’s gains. Last week the Silver price spiked above May’s high of $32.50 and climbed within reach of $33 right after the strong US NFP report, before retreating below $32 again, however the trend remains quite bullish.

The major central banks, including the Federal Reserve, European Central Bank, and now China, have all shifted towards more dovish monetary policies, which include a mix of monetary and fiscal stimulus. This environment of easing policies, combined with ongoing economic instability and geopolitical tensions—especially in regions like the Middle East and Ukraine—has heightened investor interest in safe-haven assets such as gold and silver.

Silver Chart Monthly – XAG remains close to recent highs around $32-$33

However, the likelihood of the Federal Reserve implementing a substantial 50 basis point rate cut in November has decreased. This is largely due to recent robust labor market data, which has eased fears of an impending economic downturn. In response to rising US bond yields, XAG/USD (silver) faced some downward pressure. Investors seem to be recalibrating their strategies based on the changing economic landscape and shifting central bank policies.

Central Banks Continue to Shift More toward Dovish

As inflation slows, central banks and their rhetoric turn increasingly dovish, as did several ECB who said that they will continue to gradually ease our restrictive stance, or comments from the Executive Board member Frank Elderson or Riksbank members today, which is positive for safe havens such as Silver. Riksbank’s Bunge expressed increased confidence that the period of high inflation has passed. However, he noted that the Swedish economy is currently experiencing a mild downturn, emphasizing the importance of fostering recovery at this stage.

Silver Price Live Chart