10.09.202503:47:02UTC+00Silver Firms Up on Fed Rate Cut Bets

On Wednesday, silver surpassed the $41 per ounce mark, maintaining its position near 14-year peaks as market speculators increased their expectations of rate cuts by the US Federal Reserve. This upward trend followed the Bureau of Labor Statistics' announcement on Tuesday, revealing that the US economy likely created 911,000 fewer jobs over the 12 months through March, equating to roughly 76,000 fewer jobs per month. This revelation suggests the labor market is weaker than previously estimated. Alongside the recent sluggish August jobs report, these insights strengthen the anticipation of a 25 basis point reduction in the upcoming Federal Reserve meeting, although some investors speculate a more aggressive 50 basis point cut could occur. The focus now shifts to significant inflation data scheduled for this week, including the producer price index release on Wednesday and the consumer price index on Thursday. In terms of industrial applications, robust demand from sectors such as solar energy, electric vehicles, and electronics continues to keep the physical silver market constricted, especially amid ongoing supply challenges.