Silver Soars on Reduced Rate Hike Bets and Industrial Demand
Silver prices surged to a seven-week high on Friday, reaching over $63.5 per ounce. This move comes as markets reassess the likelihood of the Federal Reserve hiking interest rates this year.
New jobs data showed an unexpected decline in payrolls, which limited the Fed's room for maneuver when it comes to tackling inflationary pressures.
However, fuel and natural gas prices have held most of their August pullback, thanks to efforts by the US presidential administration to secure a deal with Iran to restore energy exports through the Persian Gulf.
The lower risk of rate cuts has benefited precious metals like silver, while industrial demand for the metal also received a boost. Chinese imports of silver-bearing ores surged 62.5% annually in June to 219,000 tonnes, driven by expanding production for solar panels and electricity grids.