FX.co ★ Silver Tops $41 on Fed Cut Bets

Silver futures have surpassed $41 per ounce, reaching their highest mark since August 2011. This rise is driven by indications of a slowing US job market, which has strengthened the belief that the Federal Reserve might cut interest rates this year. The US economy added fewer jobs than anticipated in August, accompanied by an increase in unemployment to its highest level since 2021. This adds to a series of disappointing data, including ADP private payrolls, JOLTS job openings, and weekly jobless claims. Investors are closely watching this week's US inflation reports, with the market fully expecting a 25-basis-point rate cut later this month, and some speculating on a possible half-point reduction. On the industrial front, strong demand from the solar, electric vehicle, and electronics sectors has tightened the silver market at a time when supply continues to be limited.