Silver Extends Rally to Six-Week Peak

2026-08-05 14:18 By Joana Ferreira 1 min. read

Silver surged to $62.5 an ounce on Wednesday, its highest level since June 22, as easing geopolitical tensions and weaker-than-expected US labor market data strengthened expectations of a less aggressive Federal Reserve.

Investor sentiment improved after President Donald Trump said the US and Iran had held "very good discussions," fueling hopes of an agreement to end their five-month conflict.

Expectations of restored Middle Eastern energy supplies have driven oil prices down about 10% this week, easing inflation concerns and reducing expectations for further Fed tightening.

Meanwhile, the ADP Employment Report showed the US economy added just 44,000 private-sector jobs in July, the weakest reading since January and well below forecasts of 70,000.

Markets now assign a 57% probability to a September Fed rate hike, down from 67% a day earlier.

Still, Kansas City Fed President Jeff Schmid said additional policy tightening may be needed to return inflation to the central bank's 2% target.



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