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Silver (XAG/USD) drifts slightly lower on Thursday, trading around $53.25, down 0.15% on the day at the time of writing. The white metal remains range-bound amid thin liquidity associated with the US Thanksgiving holiday. A modest rebound in the US Dollar (USD) is capping intraday gains and keeping Silver contained.

Despite this consolidation, the broader macro backdrop remains supportive for precious metals. Several Federal Reserve (Fed) officials have recently signaled openness to near-term easing, reinforcing market expectations that the central bank could deliver another 25-basis-point rate cut at its December meeting. This outlook continues to weigh structurally on the US Dollar, helping to limit any significant pullback in XAG/USD.

At the same time, improving sentiment in global Equity markets, driven by rising confidence in Fed easing, somewhat reduces demand for safe-haven assets. However, this effect is partially offset by persistent geopolitical risks. Tensions between China and Taiwan have resurfaced after Beijing issued new warnings to Japan, while investors are closely monitoring signals of progress on a US-backed framework for peace talks between Russia and Ukraine. These factors maintain a moderate level of caution, indirectly supporting Silver.

In the United States (US), the US Dollar Index (DXY) is stabilizing after recent declines, holding slightly above its weekly lows. Recent US economic releases, including mixed manufacturing data, signs of labor-market softening and weaker consumer momentum, reinforce expectations of a slowing economic backdrop.

Earlier reports this week already highlighted similar concerns, keeping the market focused on the Fed’s next steps. Meanwhile, US markets are closed on Thursday, and delayed data releases limit short-term visibility.

Overall, Silver remains close to its recent highs, supported by a macro environment that still favors precious metals. However, thin trading conditions may keep XAG/USD in consolidation until US participants return.

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