FX.co ★ Silver Retreats From 14-Year High on Profit-Taking

Silver experienced a 1% decline, settling at approximately $40.7 per ounce on Thursday, retreating from its recent 14-year highs as investors secured profits before crucial U.S. labor market data was released. Precious metals have witnessed a surge in recent weeks, fueled by trader expectations of interest rate cuts by the Federal Reserve. Indeed, the markets have factored in a nearly 98% probability of a 25 basis point reduction this month. On Wednesday, reports indicated that U.S. job openings dropped more significantly than anticipated, reaching 7.181 million in July. Investors are now shifting their focus to today's release of the ADP private payroll data and weekly jobless claims, with the August employment report following on Friday. Meanwhile, concerns over Federal Reserve autonomy, ongoing trade tensions, and wider geopolitical issues have continued to bolster safe-haven demand for bullion. On the industrial side, demand for silver remains robust, driven by China's booming solar sector. The export of solar cells surged by over 70% in the first half of the year, significantly bolstered by strong shipments to India.