Silver tops $65 for first time
- Gold edged up alongside it, with spot prices rising 0.4% to $4,321.56 an ounce
Silver vaulted past the $65 mark for the first time on Wednesday, while gold edged higher as weaker US labour data rekindled expectations of interest-rate cuts, pressuring the dollar and boosting demand for precious metals. Spot silver climbed 2.8% to a record high of $65.63 an ounce.
Gold edged up alongside it, with spot prices rising 0.4% to $4,321.56 an ounce by 0230 GMT. US gold futures gained 0.4% to $4,350.50.
“A lot of the wrap-ups of the year have highlighted that the top performing asset class is precious metals.
I would attribute silver appreciation today to speculative flow,“ GoldSilver Central MD Brian Lan said.
The rally followed US data showing the unemployment rate rose to 4.6% in November, above a Reuters poll forecast of 4.4%.
The unemployment data has definitely helped precious metals and weakened the dollar, prompting investors to look for other asset classes offering higher returns as a hedge against risk, Lan added.
The dollar index hovered near a more than two-month low touched on Tuesday, making greenback-priced bullion more attractive to overseas buyers.
Last week, the US Federal Reserve delivered a third and final quarter-point interest rate cut for the year, while Chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected.
Traders still expect two cuts of 25 basis points each in 2026.
Non-yielding assets like bullion typically perform well in a low interest rate environment. Investors now await key US inflation readings, with the Consumer Price Index due on Thursday and the Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation gauge, due on Friday.
Meanwhile, US Treasury Secretary Scott Bessent said on Tuesday that Kevin Warsh and Kevin Hassett were both qualified to lead the Federal Reserve, adding that any Trump pick should have “an open mind.”
Elsewhere, platinum added 2.5% to $1,896.40, a more than 14-year high while palladium was steady at $1,602.60 after rising to a two-month high earlier in the session.
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