Silver rises on safe-haven demand amid US shutdown, geopolitical risks

• Silver extends its rebound, supported by strong safe-haven flows amid ongoing political and economic uncertainty.
• The US government shutdown and rising geopolitical tensions continue to fuel demand for precious metals.
• Markets await key US inflation and activity data later this week while expectations of Fed rate cuts remain elevated.

Silver (XAG/USD) advances on Monday, trading around $52.20 per troy ounce at the time of writing, up 0.70% on the day. The grey metal recovers strongly after Friday's correction, supported by renewed demand for safe-haven assets as geopolitical and fiscal concerns weigh on market sentiment.

Investors continue to seek refuge after the US government shutdown entered its third week with no resolution in sight. The prolonged political impasse is raising fears of a deeper economic slowdown and delays in the publication of key economic indicators.

At the same time, renewed tensions in the Middle East and uncertainty surrounding the upcoming US-China trade talks reinforce risk aversion. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are expected to meet in Malaysia this week, a development that could influence global market sentiment depending on the tone of the discussions.

Meanwhile, expectations of further monetary easing by the Federal Reserve (Fed) remain a major driver for Silver. According to the CME FedWatch tool, markets are pricing in a near-certain rate cut at the October Federal Open Market Committee (FOMC) meeting, followed by a high probability of another reduction in December. This dovish outlook, combined with a softer US Dollar (USD) and lower Treasury yields, continues to enhance the appeal of non-yielding assets such as Silver.