Silver Price Forecast: XAG/USD remains above $47.00 amid increased safe-haven demand

• Silver price reached a new high of $47.57 on Wednesday.
• A non-yielding Silver gained as recent US jobs data boosted expectations of further Fed rate cuts.
• US federal government funding will lapse at 04:00 GMT on Wednesday, triggering a government shutdown.

Silver price (XAG/USD) holds more than 1% gains, trading around $47.15 per troy ounce at the time of writing. The price of the grey metal marked a fresh high of $47.57 during the early Asian hours on Wednesday. The price of the non-interest-bearing Silver gains ground as recent United States (US) jobs data increased the odds of Federal Reserve (Fed) rate cuts.

The latest Job Openings in the US showed the labor market is slowing, yet vacancies rose from 7.21 million to 7.23 million in August. Meanwhile, the hiring rate edged down to 3.2%, the lowest level since June 2024, while layoffs remained at a low level.

The dollar-denominated Silver attracts buyers as the US Dollar (USD) struggles amid rising expectations of further Fed rate cuts. The CME FedWatch Tool suggests that markets are now pricing in nearly a 97% chance of a Fed rate cut in October and a 76% possibility of another reduction in December.

The US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, is remaining subdued around 97.80 at the time of writing. Traders will likely observe the United States (US) ADP Employment Change and ISM Manufacturing PMI data for September later in the day.

Silver price receives support from increased safe-haven demand amid concerns over a looming US government shutdown. US federal government funding is set to expire at 04:00 GMT on Wednesday, with around 750,000 federal employees facing furlough after Congress failed to pass funding bills. The US Labor Department said Monday that its statistics agency would suspend data releases, including Friday's closely watched monthly jobs report, if a partial shutdown occurs.