Silver jumped more than 4% to above $78.50 per ounce on Friday, recovering part of Thursday’s steep selloff following a softer-than-expected US inflation print, though the metal remained on course for a third consecutive weekly decline. The previous session’s drop was driven by broad cross-asset liquidation, as investors offloaded precious metals alongside equities and cryptocurrencies to raise cash.
Fresh data showed annual US inflation slowed to 2.4% in January, undershooting forecasts, while core inflation eased to 2.5%. The figures reinforced expectations that the Federal Reserve will lower interest rates later this year, even after stronger-than-anticipated labor market data earlier in the week had shifted expectations for the first cut closer to midyear.
In the aftermath of the inflation release, the US 10-year Treasury yield fell back toward its December lows and the dollar weakened, providing near-term support for silver. However, ongoing market volatility and uncertainty around the policy path are likely to cap upside in the near term, even as currency debasement concerns and the prospect of future monetary easing continue to support structural demand for the metal.
