SILVER surged past $65 an ounce to record highs on Wednesday, while gold advanced after softer-than-expected U.S. jobs data signalled a cooling labour market, fuelling bets on more interest rate cuts next year. Spot silver jumped 3.3% to $65.91 an ounce after touching an all-time high of $66.52 earlier in the session, extending a rally driven by tight supply, strong industrial demand and rising speculative interest.
"Silver has become an object of speculation within the options markets and fundamentally I think it's based on some clear views that the demand outlook remains very positive," said independent analyst Ross Norman.
"It's a critical mineral. It's a part of the green energy program. It's tight in every sense that supply dynamics are tight. So to that extent, speculators are swimming with the tide." Gold prices also firmed, with spot gold rising 0.4% to $4,318.99 an ounce by 1015 GMT, while U.S. gold futures gained 0.4% to $4,348.10.
Silver is up 128% this year, and gold has climbed 65% year-to-date.
Gold continues to be supported by dovish Federal Reserve expectations, economic uncertainty and geopolitical tensions, said ActivTrades analyst Ricardo Evangelista. While nonfarm payrolls increased by 64,000 jobs, the U.S. unemployment rate rose to 4.6% in November, its highest level since September 2021.
Markets await crucial U.S. inflation data this week, with Consumer Price Index data due on Thursday and Personal Consumption Expenditures data on Friday. The Federal Reserve last week delivered its third and final quarter-point rate cut of the year, and Chair Jerome Powell’s comments were viewed as less hawkish than expected. Traders are pricing in two 25-basis-point cuts in 2026.
Non-yielding assets like gold typically perform well in low-interest-rate environments. On the geopolitical front, U.S. President Donald Trump ordered on Tuesday a "blockade" of all sanctioned oil tankers entering and leaving Venezuela. Elsewhere, platinum was up 4.2% at $1,927.35, its highest in more than 17 years, while palladium added 2.2% to $1,638.96, a two-month high. "The entire white metal sector is surging in parallel and the EU being set to scrap the 2035 combustion engine ban is clearly giving that sector quite a lift," Norman added. - Reuters
