The Federal Reserve has held rates steady since September, but the combination of softer employment data and declining business confidence has prompted speculation that policymakers may ease monetary conditions to support demand heading into 2026.

Weak Labor Market Fuels Safe-Haven Demand

The latest labor data underscored the fragility of the US job market. Private employers cut 153,000 jobs in October, the steepest monthly decline in over two decades. Layoffs in the government and retail sectors, coupled with an uptick in corporate cost-cutting, heightened fears of a broader slowdown.

Consumer sentiment also dropped to its lowest level in nearly three and a half years, according to a University of Michigan survey, as Americans grew increasingly concerned about inflation, fiscal uncertainty, and the prolonged government shutdown.

These developments have pushed investors toward precious metals, which tend to perform well in times of economic uncertainty and falling interest-rate expectations.

Silver Tracks Gold Higher on Industrial Outlook

Silver followed gold higher, supported by its dual role as both a safe-haven and an industrial metal. Analysts at Metals Focus noted that expectations of weaker Treasury yields and a potential rebound in manufacturing activity could sustain silver’s momentum.

With market attention turning to Fed speeches and upcoming inflation data, traders are closely watching whether policymakers confirm growing market bets on a softer monetary path through year-end.