Silver rises globally and locally supported by a weaker dollar and anticipation of the Fed minutes

Silver prices recorded a notable increase during Wednesday’s trading in both local markets and the global exchange, amid broad anticipation of the minutes from the latest U.S. Federal Reserve meeting and growing signs of a labor-market slowdown — factors that have strengthened investor appetite for precious metals as safe-haven assets.

Local market movements

A report issued by the “Safe Haven Center” showed that the price of 800-grade silver rose from 66 to 68 pounds per gram, while 925-grade reached 79 pounds, and 999-grade recorded around 85 pounds. The silver sovereign (guinea) remained unchanged at 632 pounds.

Global rise supported by a weaker dollar

Globally, the price of silver per ounce increased from $51 to $52, supported by a 0.2% drop in the U.S. dollar index, according to Reuters data, as markets await the October Federal Reserve meeting minutes.

Metals priced in dollars — including silver — typically become more attractive when the U.S. currency weakens, as they become cheaper for holders of other currencies.

Data from the CME FedWatch tool indicates that expectations of a rate cut at the December meeting have fallen to around 47%, amid ongoing divisions within the Fed regarding the timing of the start of the monetary-easing cycle.

Labor-market slowdown gives an extra boost to industrial metals

Silver benefits from its dual nature as both a precious and industrial metal, which makes it highly sensitive to economic activity indicators.

ADP data released yesterday showed a decline in the average private-sector job gains over the four weeks ending November 1, accompanied by an increase in continuing unemployment claims to their highest level since August — reflecting the early stages of a slowdown in the U.S. labor market.

These figures, along with sharp declines in global equities due to concerns over tech-sector valuations, encouraged investors to strengthen their positions in metals, including silver.

Strong industrial demand supports medium-term prices

According to the “Bloomberg Metals Outlook,” industrial demand — particularly from the solar-energy and electronics sectors — continues to provide a core pillar of support for the silver market.

A report by the Silver Institute also indicates that the global supply deficit is set to continue for a third consecutive year, offering structural support for prices that could extend into the first quarter of 2026.

Markets remain cautious ahead of the release of the Federal Open Market Committee minutes later today, which may clarify why policymakers are hesitant to commit to a December rate cut, despite an earlier 25-basis-point reduction in October.

Investors are also awaiting the delayed U.S. non-farm payrolls report for September, scheduled for release on Thursday, with expectations of only about 50,000 new jobs amid signs of slowing momentum in the labor market.

Despite the decline in the likelihood of a rate cut, silver continues to enjoy broad support from falling equities, a weaker dollar, and rising geopolitical risks — a combination that enhances its appeal as a defensive asset in the sessions ahead.