Silver Prices Soar on Weaker Dollar and Fed Pause Expectations

Silver prices have reached a six-week high, driven by a weaker US dollar and expectations that the Federal Reserve may pause its rate-hiking cycle. The precious metal rose to $24.50 per ounce, its highest level since mid-April.

The recent surge in silver prices is attributed to several factors. A softer dollar makes silver cheaper for holders of other currencies, boosting demand. Additionally, market sentiment has shifted toward the view that the Fed might not need to raise interest rates as aggressively as previously thought, reducing the opportunity cost of holding non-yielding assets like silver.

The upcoming US jobs report is expected to show a slowdown in job creation, with economists forecasting around 180,000 new jobs added in May. A weaker-than-expected number could reinforce the case for a Fed pause and potentially push silver prices even higher.