Silver steady amid strong US data

Silver traded around $48.1 per ounce on Thursday, stabilizing after recent gains as investors weighed a series of stronger-than-expected U.S. economic reports.

Data from ADP showed that private sector employment rose by 42,000 in October, beating forecasts and highlighting the continued resilience of the labor market, while the ISM Services PMI climbed to an eight-month high, signaling solid business activity.

The signs of economic strength prompted markets to scale back expectations for imminent Federal Reserve rate cuts, as policymakers are likely to proceed cautiously in light of the robust data.

However, uncertainty remains elevated due to the ongoing U.S. government shutdown, which has delayed the release of several key economic indicators.

Futures markets now assign a 62% probability to a 25-basis-point rate cut in December, down sharply from over 90% prior to last week’s FOMC meeting.

Last month, silver briefly surged to record highs amid a short squeeze and liquidity crunch in London, before retreating as market conditions normalized and profit-taking set in.