Silver (XAG/USD) retraced recent losses and is trading around $52.70 per troy ounce during Friday’s Asian session. The rise is largely supported by safe-haven demand, as uncertainty persists over the US economic outlook following the government’s reopening after the record 43-day shutdown.

Investors remain cautious due to a backlog of official data, with early private-sector readings for October pointing to a cooling labor market, softer consumer confidence, and ongoing inflation concerns. National Economic Council Director Kevin Hassett warned that some October data may “never materialize” due to disruptions caused by the shutdown.

While safe-haven flows support Silver, the upside may be limited by cautious Federal Reserve signals. Recent comments from Fed officials, including Alberto Musalem and Neel Kashkari, have reduced expectations for a December rate cut, noting that inflation remains elevated and there is little room to ease without over-accommodating monetary policy. According to the CME FedWatch Tool, markets now price in roughly a 50% chance of a 25-basis-point Fed rate cut in December, down from 69% last week.

In addition, supply-side concerns have bolstered Silver’s gains. The US Department of the Interior recently classified Silver, Copper, and metallurgical Coal as “critical minerals,” highlighting their economic and national security importance. This designation raises the possibility of trade measures or Section 232 investigations, similar to past actions on Copper, adding a further bullish undertone to Silver prices.

Overall, Silver remains supported above $52.50, driven by a combination of US economic uncertainty, safe-haven demand, and supply risks. However, cautious Fed commentary may cap further gains in the near term, keeping traders attentive to upcoming policy signals and market developments.