Silver Hits Six-Week High as Interest Rate Expectations Eased
Silver prices have rallied to a six-week high on Friday, reaching $64.10 and climbing 4.16% in a day that saw investors scale back expectations for further interest rate hikes from the Federal Reserve (Fed). This move is part of the metal's best weekly performance since February.
The rally comes as fading expectations of Fed tightening continue to support precious metals, which tend to perform well when interest rates are expected to ease. Geopolitical tensions in the Middle East have also contributed to demand for safe-haven assets, with investors seeking refuge from uncertainty surrounding Iran, Ansar Allah in Yemen, and Saudi Arabia.
The United States' Nonfarm Payrolls (NFP) report is set to be released later on Friday, which could reshape expectations for the Fed's monetary policy path. Economists expect the US economy to have added 80K jobs in July after 57K in June, with the Unemployment Rate forecast to remain unchanged at 4.2% and annual Average Hourly Earnings growth expected to hold at 3.5%.