Silver hits historic high amid disappointing US unemployment data
What's the story
Silver has hit a new high, crossing the $65 mark per ounce for the first time ever. The surge is attributed to weaker US labor data, which has raised expectations of interest rate cuts. Gold prices have also increased in response to the same factors, with both metals benefiting from a weaker dollar and investors' shift toward non-yielding assets amid low-interest rates.
Market response
Silver and gold prices surge amid economic shifts
Spot silver surged 2.8% to a record high of $65.63 per ounce, while gold prices also rose 0.4% to $4,321.56 per ounce at 02:30 GMT. US gold futures gained the same percentage as spot prices. Brian Lan, Managing Director at GoldSilver Central attributed today's silver appreciation largely to speculative flow in the market.
Economic indicators
US unemployment rate rise fuels precious metal rally
The surge in silver and gold prices follows the US unemployment rate's rise to 4.6% in November, surpassing a Reuters poll forecast of 4.4%. Lan said this data has certainly helped precious metals and weakened the dollar, pushing investors toward other asset classes with higher returns as a risk hedge. The dollar index remained near a two-month low hit on Tuesday, making dollar-denominated bullion more appealing to foreign buyers.
Rate adjustments
Federal Reserve's interest rate cut impacts precious metals
Last week, the US Federal Reserve announced its third and final quarter-point interest rate cut for the year. Chair Jerome Powell's comments were seen as less hawkish than expected. Traders are still betting on two 25-bps cuts in 2026. Non-yielding assets like bullion usually do well in a low-interest-rate environment, further boosting gold and silver prices amid these economic shifts.