Silver Price Forecast: XAG/USD reaches fresh 14-year highs above $48.50

• Silver price gains ground due to the ongoing US government shutdown.
• The non-yielding Silver receives support from rising odds of further Fed rate cuts.
• Fed Governor Miran reaffirmed his view that the central bank has considerable room to lower rates toward a neutral level.

Silver price (XAG/USD) marks a fresh 14-year high of $48.59 during the Asian hours on Monday. The price of the safe-haven Silver gains ground due to the ongoing United States (US) government shutdown. Traders adopt caution after US Senators failed to pass spending proposals to reopen the federal government for a fourth time, extending the ongoing shutdown into a new week.

The government shutdown has postponed key economic data, including September's Nonfarm Payrolls report, forcing investors to rely on alternative indicators that point to a softening labor market and strengthen expectations of an imminent rate cut.

The non-interest-bearing Silver attracts buyers amid an increased likelihood of the US Federal Reserve (Fed) delivering rate cuts in the upcoming meetings. The CME FedWatch Tool suggests that markets are now pricing in a 95% chance of a Fed rate cut in October and an 84% possibility of another reduction in December. Traders are also awaiting comments from Fed Governor Stephen Miran and Chair Jerome Powell later this week for further policy guidance.

Fed Governor Stephen Miran doubled down on his belief that the Fed has a lot more room to cut its way to neutral interest rates. Miran also said that "I hope we'll have the needed data by the October FOMC meeting." "Policy has become much more restrictive this year."

Silver price also gains ground due to supply concerns, as the Silver Institute projected a global market deficit for the fifth consecutive year in 2025, with output forecast at 844 million ounces, around 100 million ounces below demand.