Silver prices surged to $35.60 per ounce on Thursday, reaching their highest level since February 2012. This increase was driven by weak US economic data coupled with a dovish Federal Reserve outlook, which bolstered demand for safe-haven assets ahead of the release of Friday’s non-farm payrolls report. With a series of disappointing economic indicators, expectations for a Federal Reserve rate cut in September have intensified. The latest ADP report indicated that only 37,000 private-sector jobs were added in May—marking the weakest monthly gain since March 2023. Additionally, the ISM Services PMI fell to 49.9, indicating the sector's first contraction in nearly a year.
Beyond economic data, geopolitical and trade tensions are adding further unease to the markets. The US has increased tariffs on steel and aluminum imports to 50%, raising concerns of renewed trade friction with key partners. Meanwhile, investors are closely watching an important call between US President Donald Trump and Chinese President Xi Jinping, as its outcome could significantly influence global trade relations.
