HG MARKETS:

Silver prices (XAG/USD) staged a rebound on Friday, trading around $52.70 per troy ounce during Asian hours. The metal recovered losses from the previous session, driven by rising safe-haven demand amid ongoing uncertainty over US economic data.

Investor caution has been fueled by the backlog of official economic reports following the record 43-day US government shutdown. Preliminary private-sector data for October indicate a slowing labor market, softer consumer confidence, and persistent inflation pressures, encouraging market participants to turn to precious metals.

Kevin Hassett, Director of the National Economic Council, cautioned that some October economic data “may never materialize” as several government agencies were unable to gather the information during the shutdown. Although President Donald Trump signed the funding bill on Thursday to end the shutdown, uncertainties surrounding the US economic outlook remain.

Silver’s gains may be capped by cautious comments from Federal Reserve officials, which have dampened expectations of a December rate cut. With higher interest rates making non-yielding assets like Silver less appealing, the CME FedWatch Tool currently reflects roughly a 50% probability of a 25-basis-point rate cut, down from 69% just a week ago.

Supply-side concerns have also contributed to the bullish sentiment. The US Department of the Interior recently designated Silver, Copper, and metallurgical Coal as “critical minerals,” emphasizing their economic and national security importance.

This classification raises the possibility of trade measures and Section 232 investigations similar to those previously applied to Copper, supporting demand for Silver as investors consider potential supply disruptions in the market.