Silver Price Forecast: XAG/USD hovers around $49.00 as safe-haven demand eases

• Silver price remains below a new all-time high of $49.55, reached on Wednesday.
• The non-yielding Silver may further advance as the FOMC Meeting Minutes suggested potential for further rate cuts.
• The US government shutdown entered its ninth day with no progress as the Senate again rejected rival funding proposals.

Silver price (XAG/USD) trades near $48.90 during the Asian hours on Thursday, remaining below the fresh all-time high of $49.55, which was reached on Wednesday. The price of the grey metal moves little as safe-haven demand eases on signs of subsiding geopolitical risks.

US President Donald Trump announced that Israel and Hamas have agreed on the first phase of a peace plan, potentially ending the two-year conflict and freeing hostages, with confirmation from Israeli officials, Hamas, and mediator Qatar.

However, the non-interest-bearing Silver may further attract buyers as the latest Federal Open Market Committee (FOMC) Minutes from the September meeting suggested policymakers are leaning toward further rate cuts this year. The CME FedWatch Tool suggests that markets are now pricing in a 92.5% chance of a Fed rate cut in October and an 78% possibility of another reduction in December.

Fed policymakers judged it would likely be appropriate to ease policy further over the remainder of 2025. Some members noted financial conditions suggested policy may not be particularly restrictive. Most participants judged downside risks to employment to have increased, while upside risks to inflation had either diminished or not increased.

Silver prices may gain ground as the US government shutdown entered its ninth day with no sign of progress, as the Senate on Wednesday once again rejected competing funding proposals from Republicans and Democrats to end the stalemate. The ongoing US government shutdown delayed economic data and threatened public-sector layoffs, while private reports showed contracting ADP payrolls and ISM PMI job indices.