Silver prices climb for second straight session

Silver prices climbed in European trading on Monday, extending their rebound for a second consecutive day from a three-week low, supported by buying from lower levels and a weaker US dollar in the foreign exchange market.

Weaker-than-expected US jobs data has raised the likelihood that the Federal Reserve will cut interest rates in September. Investors now await more economic indicators and commentary from Fed policymakers to reassess those expectations.

Price Overview

• Today’s silver prices: Silver rose by 1.0% to $37.40, up from the opening level of $37.04. The session’s low stood at $36.68.

• On Friday, silver gained around 0.9%—its first rise in three days—as part of a recovery from the three-week low of $36.22 per ounce.

• Last week, silver lost 3.0%, marking its second weekly loss in the past three weeks due to profit-taking from the 14-year high of $39.53 per ounce.

US Dollar

The US Dollar Index hit a one-week low of 98.60 on Monday, reflecting continued weakness against both major and minor currencies.

The decline came as weak US labor data and newly announced tariffs by President Donald Trump reignited fears of an economic slowdown in the world’s largest economy, reinforcing expectations for a rate cut in September.

US Interest Rates

• US job growth slowed more than expected in July, with nonfarm payrolls rising by just 73,000, following a downward revision to 14,000 jobs in June.

• According to CME Group’s FedWatch tool, the probability of a 25 basis point rate cut at the September meeting rose from 43% to 75%, while the chance of no change fell from 57% to 25%.

• The odds of a 25 basis point cut in October rose from 64% to 95%, with the likelihood of no change dropping from 36% to 5%.

• Traders now anticipate around 63 basis points of easing by December—up from 35 basis points prior to the jobs report.

Lower US interest rates generally favor non-yielding assets such as gold, silver, and other precious metals.