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Silver prices surged to $62.35 on Friday, marking a 2.32% daily increase, driven by reduced expectations of aggressive Federal Reserve rate hikes following a weaker-than-expected U.S. employment report. The nonfarm payrolls data showed only 14,000 jobs added in July, far below the projected 180,000, while the unemployment rate rose to 4.3%. This has prompted investors to shift capital toward safe-haven assets like precious metals, which typically benefit from lower real interest rates and inflationary pressures.
The move in silver highlights the sensitivity of commodity markets to central bank policy signals. A dovish Fed stance could weaken the U.S. dollar, indirectly boosting dollar-denominated commodities. Traders are also monitoring technical levels, with $62.35 acting as a key resistance. A sustained break above this level could target $64.50, while a pullback below $60 might signal renewed bearishness.
Looking ahead, the focus remains on the Fed's September meeting and upcoming inflation data. If the central bank delays rate hikes, silver could see further gains. Gulf investors should also consider geopolitical risks in mining regions and global supply chain dynamics, which may amplify price volatility in the short term.
