Silver's Two-Day Rally Fails to Address Year-to-Date Damage

Silver prices rose for two consecutive days, ending Friday at $59.27 per ounce, a 2.36% daily gain.

The rally was sparked by Japan's apparent intervention in currency markets to prop up the yen, which sent the dollar lower and made dollar-denominated silver cheaper for international buyers.

However, this bounce does little to repair the year-to-date damage, as silver remains down 16.48% since January 1 and over 50% below its January record high.

The market is currently pricing in a roughly 63%-67% probability of a September rate hike, which continues to cap upside potential.