Silver (XAG/USD) extended its rally for a second consecutive session on Monday, trading around $49.20 per troy ounce during the Asian session. Despite modest gains, upside momentum appears capped as improving market sentiment limits demand for safe-haven assets. Optimism grew after the US Senate made progress toward passing a deal to reopen the federal government.
US Senate moves closer to ending government shutdown
The US Senate advanced a government funding bill over the weekend, voting 60–40 in favor of an initial measure to extend enhanced Affordable Care Act subsidies.
The legislation still requires approval from the House of Representatives before being sent to President Donald Trump for final authorization, a process that may take several days, according to Reuters. A finalized agreement would end the longest government shutdown in US history, easing investor concerns and reducing demand for defensive assets like silver.
Easing US-China trade tensions curb safe-haven demand
Market sentiment also improved after China’s Ministry of Commerce announced that it would temporarily lift its ban on approving exports of “dual-use items” related to gallium, germanium, antimony, and super-hard materials to the US.
The suspension, effective through November 27, 2026, marks another step toward de-escalating trade tensions between the world’s two largest economies. Reduced geopolitical risk often weighs on demand for precious metals as safe-haven assets.
Silver gains on weaker USD
Despite the shift toward risk-on sentiment, silver gained more than 1.5% on Monday, supported by a weaker US dollar (USD). The softer Greenback made dollar-denominated commodities more attractive for foreign investors. However, if the government shutdown resolution strengthens US fiscal confidence, the USD could find renewed support, potentially limiting further upside for the grey metal.
