Silver declines as US shutdown resolution eases safe-haven demand

• Silver pulls back around $53.00 after hitting an intraday high of $54.39.
• Improved market sentiment following the end of the US government shutdown slightly reduces safe-haven demand.
• Federal Reserve policy expectations remain mixed as recent hawkish remarks temper rate-cut bets.

Silver (XAG/USD) declines on Thursday, ending a four-day winning streak. The grey metal trades around $53.00 at the time of writing, down 0.35% on the day, after marking an intraday high at $54.39, just shy of the all-time high at $54.86. The pullback comes as improving market sentiment reduces buying pressure on safe-haven assets.

The market mood has improved after the announcement of the end of the US government shutdown. President Donald Trump has officially signed the temporary funding bill, allowing federal operations to resume after the longest budget impasse in US history. This resolution eases part of the political risk that had recently supported Silver.

On the macroeconomic front, however, Silver remains underpinned by lingering uncertainty surrounding the US economic outlook and the policy path of the Federal Reserve (Fed) while this week's labor data continue to point to a cooling job market. The ADP Employment Change report indicated an average of 11,250 job losses per week over the four weeks to October 25, reinforcing expectations of a dovish turn.

However, prospects for a December rate cut have partly faded. According to the CME FedWatch tool, markets now price nearly a 53% chance of a 25-basis-point cut in December, down from 63% a day earlier. This shift reflects a firmer tone from several Fed officials. Atlanta Fed President Raphael Bostic warned on Wednesday that easing policy too soon could "feed the inflation beast," while noting that a sharp downturn in the labor market is unlikely in the near term.

For now, Silver is consolidating its strong recent gains, supported by a generally constructive macro backdrop but held back by a slight improvement in risk sentiment and more cautious Fed communication. Traders will now focus on the gradual return of US data releases, which could add volatility to precious metals in the coming days.