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.