Silver surges to four decade high of $50

October 10, 2025 (MLN): Silver extended its rally during  Asian trading hours on Friday, to around $49.7 staying near its highest level in nearly forty years of $50 which came around on Thursday.

The white metal remains supported by robust safe-haven flows, rising industrial demand, and growing expectations of a U.S. interest rate cut.

Spot silver was up 1.31% at $49.77 an ounce as of [11:03 am] PST, according to data reported by Mettis Global.

The continued U.S. government shutdown, now entering its tenth day after Congress failed to reach a budget deal by the September 30 deadline, has added to economic uncertainty.

Concerns over tariffs, the federal funding impasse, and geopolitical tensions are driving investors toward safer assets such as silver.

Expectations for monetary easing from the Federal Reserve (Fed) are also fueling the metal’s gains.

According to the CME FedWatch Tool, traders are pricing in a 95% probability of a 25-basis-point rate cut at the Fed’s October meeting.

However, expectations for an additional cut in December have eased slightly to 82%, down from 90% last week.

 Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like silver, thereby supporting prices.

Market participants will now focus on the preliminary U-Mich Consumer Sentiment Index, due later on Friday, as well as speeches from Fed officials Goolsbee and Musalem.

A stronger-than-expected sentiment reading could strengthen the U.S. Dollar and potentially weigh on silver prices in the short term.

Copyright Mettis Link News