Silver prices hovered near $62 per ounce on Thursday, holding close to the seven-week high reached in the previous session as markets reassessed the likelihood of a Federal Reserve rate hike this year. Fuel and natural gas prices retained most of their August pullback, amid efforts by the US presidential administration to secure an agreement with Iran and GCC members that would restore energy exports through the Persian Gulf. The reduced risk that higher fuel costs would feed into broader inflation lowered expectations for a Fed rate increase in 2024.
Industrial demand also underpinned silver, with Chinese imports of silver-bearing ores jumping 62.5% year-on-year in June to 219,000 tonnes. The figures aligned with expanding production in solar panels and electricity grid infrastructure. Still, persistent risks of a renewed spike in energy prices kept silver trading not far above the seven-month low of $55 per ounce hit on July 16th. In addition, manufacturing demand in China showed signs of slowing, tempering the metal’s upside.
