Demand for the dollar as a safe haven is also amplified by ongoing geopolitical uncertainty, creating additional challenges for silver prices.
Impact of US economic data and dollar strength on silver
The US dollar has gained strength and is hovering around a three-month high, driven by speculation that the Fed will cut rates by just 25 basis points at its November meeting. Recent economic data has reinforced this outlook.
In September, durable goods orders fell just 0.8%, exceeding the expected 1% decline, while core orders (excluding transportation) rose 0.4%.
Additionally, October’s Consumer Sentiment Index, measured by the University of Michigan, peaked at 70.5 in six months.
These data indicate resilience in the US economy, fueling expectations of modest Fed rate cuts rather than an aggressive policy shift.
Rising Treasury yields, another factor driven by the economic data, has further supported the dollar’s strength, increasing downward pressure on silver.