Precious metals rallied sharply today, as the U.S. government shutdown, now the longest in history, intensified economic uncertainty.
Silver surged from 3.09% to $49.92 per ounce, hitting a three-week high, while gold climbed 1.87% to $4,080.01. Platinum rose 1.54% to $1,587.07, and palladium gained 0.46% to $1,389.94.
The rally was fueled by collapsing consumer confidence, with the University of Michigan’s November sentiment index dropping to 50.3, its second-lowest ever, amid the shutdown’s fallout.
Private ADP data showed only 42,000 jobs added in October, a weak rebound from September’s loss, with key sectors still contracting.
The shutdown has furloughed 750,000 federal workers, halted services, and delayed critical economic reports, potentially shaving 0.2% off GDP per week.
Markets await possibly postponed data on employment, inflation, and producer prices. Investors are flocking to safe havens, with silver and gold leading gains.
Silver’s industrial demand (e.g., in solar and electronics) has added a bullish layer, while gold’s surge underscores its role as an inflation hedge.
If the shutdown resolves before Thanksgiving, expect some pullback; otherwise, metals could test recent highs.
Administrator and Writer
