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Spot Silver held just below an intraday high of $36.18 on Friday, its strongest price level since February 29th 2012, as weak US macro data and a dovish Federal Reserve outlook continued to underpin safe-haven demand.
The latest data sets out of the US revealed a contraction in activity in the services sector, coupled with rising jobless claims and the slowest private payrolls growth since March 2023 in May.
The data added to expectations that the Federal Reserve would likely deliver at least two rate cuts by year-end – with the first probably occurring in September.
Market focus now sets on the US Non-Farm Payrolls report later in the day for more insight into macroeconomic conditions and the Fed’s future interest rate path.
In the meantime, a phone call between US President Donald Trump and Chinese President Xi Jinping provided certain relief, as both sides demonstrated willingness to resume negotiations on trade. Yet, no concrete progress has so far been reported.
Spot Silver was last up 1.47% on the day to trade at $36.17 per troy ounce.
“The metal has firm fundamentals, including being in a supply deficit and industrial demand being robust,” Nitesh Shah, commodities strategist at WisdomTree, was quoted as saying by Reuters.
Silver is facing its fifth successive year of a structural market deficit, according to the Silver Institute industry association.
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