Silver prices hit a 12-year high of $35.60 per ounce due to weak US economic data and expectations of a Federal Reserve rate cut. Learn why silver is surging and what’s driving market trends.
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Silver Prices Soar to Highest in Over a Decade
Silver prices jumped to $35.60 per ounce on Thursday, the highest level in more than 12 years! This big increase happened because of some weak economic news from the US and growing hopes that the Federal Reserve might lower interest rates soon. Investors are also keeping a close eye on an important jobs report coming out on Friday.
What’s Driving Silver’s Big Surge?
Weak US Economic Reports
Recent reports show the US economy isn’t doing as well as expected. For example, a report called the ADP showed only 37,000 new private-sector jobs were added in May, the lowest number in over two years. Another report, the ISM Services PMI, dropped to 49.9, which means the service industry is shrinking for the first time in almost a year. These disappointing numbers are making people turn to silver as a “safe-haven” investment—something they trust when the economy feels shaky.
Also Read: Silver Reaches Its Highest Price in 12 Years
Hopes for Lower Interest Rates
Many investors believe the Federal Reserve, which controls US interest rates, might cut rates in September. Lower interest rates make borrowing cheaper, which can boost spending but also make safe investments like silver more attractive. This hope is pushing silver prices higher.
Other Factors Boosting Silver
Trade and Tariff Tensions
The US recently raised taxes (called tariffs) on imported steel and aluminum to 50%. This move could create tension with other countries and disrupt global trade, making investors nervous. When people are worried about trade conflicts, they often buy silver to protect their money.
Global Political Uncertainty
A big phone call between US President Donald Trump and Chinese President Xi Jinping is coming up. This call could affect trade and relations between the two countries. Investors are watching closely, and this uncertainty is another reason they’re turning to silver.
Also Read: MCX Silver: Key Price Levels to Watch in Intraday for Success in Trading
What’s Next for Silver?
With the important non-farm payrolls report coming out on Friday, investors are eager to see if the US economy shows more signs of slowing down. If the report is weak, silver prices could climb even higher as people look for safe places to put their money.
Silver’s rise shows how much people are paying attention to the economy and global events right now. If you’re thinking about investing, keep an eye on these trends!
