Silver firms up on Fed rate cut bets
Silver climbed above $41 per ounce on Wednesday, holding near 14-year highs as traders increased wagers on US Federal Reserve rate cuts.
On Tuesday, the Bureau of Labor Statistics reported the US economy likely added 911,000 fewer jobs in the 12 months through March, or about 76,000 fewer per month, underscoring a weaker labor market than previously estimated.
Together with last week’s soft August jobs report, the data reinforced expectations for a 25 basis point cut next week, though some investors are betting on a larger 50 basis point move.
Attention now turns to key inflation figures this week, with the August producer price index due Wednesday and the consumer price index on Thursday.
On the industrial side, steady demand from solar, electric vehicles, and electronics has kept the physical silver market tight at a time when supply constraints persist.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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