Silver prices rose in the European market on Friday, extending gains for the third day in a row, surpassing the psychological barrier of $42 an ounce for the first time since 2011, marking a new 14-year high, and heading for a fourth consecutive weekly gain.

A series of weak data on the US labor market, along with moderate US inflation figures, boosted expectations that the Federal Reserve will cut interest rates by 25 basis points next week.

Price Overview

• Silver prices today: Silver rose by 2.2% to $42.47, the highest since September 2011, from the opening level of $41.57, with a low of $41.40.

• At Thursday’s settlement, silver gained 1.0% in its second consecutive daily rise, supported by declines in the dollar and US yields.

Weekly Trading

Over the course of this week, which officially concludes at today’s settlement, silver is up about 3.5% so far, heading for its fourth consecutive weekly gain.

These weekly gains are attributed to strong demand for precious metals as a safe haven, amid mounting concerns about rising global debt levels and escalating geopolitical tensions in the Middle East and Eastern Europe.

US Interest Rates

• Weekly jobless claims rose last week, confirming a significant weakening in the labor market. This followed last Friday’s US employment report, which indicated that job growth nearly stalled in August alongside a higher unemployment rate.

• According to the CME FedWatch tool: the probability of a 25 basis point rate cut at the September meeting is currently priced at 100%, while the chance of a 50 basis point cut stands at 7.5%.

• The probability of a 25 basis point rate cut in October is also fully priced in at 100%, with the chance of a 50 basis point cut steady at 6%.

• The Federal Reserve meets next week to discuss monetary policy adjustments in line with US economic developments, with a 25 basis point rate cut widely expected.

Chinese Demand

Industrial activity in China exceeded expectations in August, recording its fastest pace of growth in five months, according to recent data released in Beijing, in the latest sign of improving economic activity in the world’s largest consumer of metals and commodities.

Bitcoin rose on Friday, following gains in risk assets amid ongoing bets that the Federal Reserve will cut interest rates next week.

However, gains in cryptocurrencies, especially Bitcoin, were capped by growing doubts about the viability of companies holding massive Bitcoin reserves, after Strategy (formerly MicroStrategy – Nasdaq: MSTR) was rejected for inclusion in the S&P 500 index earlier this month.

Bitcoin continued to trade in a narrow range below $120,000. The world’s largest cryptocurrency gained 1.2% to $115,604.3 by 01:56 ET (05:56 GMT). Over the week, it rose 4.9%, as some buyers returned after the drop from record highs in mid-August.

JPMorgan Chase: Rejection of Strategy inclusion a blow to corporate Bitcoin reserves

JPMorgan said the S&P 500 committee’s rejection of Strategy represented a major setback for the approach of companies holding massive Bitcoin reserves.

“This indicates the committee is concerned about including companies like MicroStrategy, which are effectively Bitcoin investment funds, in the index,” analysts wrote in a note this week.

The sharp rise in the company’s valuation due to its massive Bitcoin exposure had allowed it to be included in other indices, including the Nasdaq 100 and Russell 2000 last year. That attracted more buying in the stock as index funds adjusted their holdings accordingly.

But JPMorgan added that the trend may have “reached its limits,” noting the rejection also came amid investor fatigue in the corporate treasury space, raising further questions about the sustainability of Strategy’s model in the long run.

While the company’s stock far outperformed Bitcoin in 2024, that was not the case in 2025; Strategy shares are up 8.6% year-to-date, compared with a nearly 24% gain in Bitcoin. The company remains the world’s largest institutional holder of Bitcoin, with over 600,000 tokens in its reserves.

Crypto prices today: Broad gains on Fed rate cut bets

Broader cryptocurrencies rose on Friday, supported by renewed risk appetite amid bets on a Fed rate cut next week. Altcoins were also on track for a strong week after several weeks of sharp losses.

Rate cut bets persisted even though US CPI data showed inflation remained elevated in August, with President Donald Trump’s new tariffs coming into effect.

But weekly jobless claims data showed continued weakness in the labor market, boosting expectations for monetary easing from the Fed.

CME FedWatch data showed markets pricing in a 94.6% chance of a 25-basis-point cut at the Fed’s September 16–17 meeting, versus a 5.4% chance of a 50-basis-point cut.

Rate cuts are typically seen as supportive for risk assets such as cryptocurrencies, as they increase liquidity and encourage greater speculative flows.

Ether, the world’s second-largest cryptocurrency, rose 2.6% to $4,552.31 and is up 6.6% this week.

XRP climbed 2.2% to $3.0658, gaining 8.8% this week.

Cardano added 1.8%, and Solana jumped 6.7%.

Among meme coins, Dogecoin rose 5%, while $TRUMP added about 0.9%.

Oil prices held steady on Friday as concerns over oversupply and weak US demand were offset by risks of supply disruptions stemming from conflicts in the Middle East and Ukraine.

Brent crude futures rose 42 cents, or 0.6%, to $66.79 a barrel by 10:20 GMT, while US West Texas Intermediate gained 31 cents, or 0.5%, to $62.68. Both Brent and WTI had fallen on Thursday by 1.7% and 2%, respectively.

Olle Hvalbye, analyst at SEB Research, said in a note: “Brent crude is nearly unchanged this week, but after notable volatility (…) reflecting the ongoing tug-of-war in the market between the risks of growing oversupply and persistent geopolitical uncertainty as well as resilient refined product margins.”

A monthly report from the International Energy Agency (IEA) on Thursday indicated that global oil supplies will rise faster than expected this year, driven by output increases from OPEC+, the alliance of OPEC and partners including Russia.

However, OPEC’s own report later that same day maintained relatively upbeat forecasts for oil demand growth this year and next, reaffirming that the global economy remains on a solid growth trajectory.

John Evans, analyst at PVM Oil Associates, said that while downside risks remain for oil prices, factors such as tightness in the middle distillates market, China’s continued stockpiling, and potential sanctions on Russia and secondary sanctions on its customers continue to support the market.

On Friday, Russia’s Primorsk port in the northwest — one of its largest hubs for crude and fuel exports — came under drone attack, sparking a fire at a vessel and a pumping station, according to the regional governor.

On the supply side as well, India’s Adani Group, the country’s largest private port operator, banned vessels under Western sanctions from entering all of its ports, according to three sources and documents seen by Reuters. This decision could restrict flows of Russian oil.

India is the largest buyer of seaborne Russian oil, most of which is transported on tankers subject to sanctions by the European Union, the US, and the UK.

The dollar recorded a slight gain on Friday after falling in the previous session, as a surge in US jobless claims and a modest rise in inflation kept investors focused on upcoming Federal Reserve decisions regarding interest rate cuts next week and beyond.

The dollar index rose 0.1% to 97.66, after ending a two-day winning streak on Thursday, though it remains on track for a second consecutive weekly decline.

Thursday’s data showed the largest weekly increase in new US jobless claims in four years, overshadowing August inflation data, which showed prices rising at the fastest pace in seven months but staying modest and broadly in line with expectations.

Although this mixed data may add some complications for policymakers at the Fed’s next meeting, investors’ attention remains fixed primarily on the path of rate cuts.

Dominic Bunning, head of G10 currency strategy at Nomura, said: “The hurdle to faster rate cuts is labor market weakness, as long as inflation remains under control. I think the probability of a 50-basis-point cut next week is still very low.”

Futures markets are pricing in an almost certain 25-basis-point cut at the September 17 meeting. However, traders have trimmed bets on a larger 50-basis-point cut, with expectations shifting toward a more modest easing path before year-end, according to the CME FedWatch tool.

In bonds, the yield on 10-year US Treasuries rose two basis points to 4.0338% from 4.011% at the previous close, after coming close to breaking below 4% on Thursday for the first time since April.

In the currency market:

The euro held at $1.1727 after rising yesterday, as traders reduced bets on further European Central Bank cuts, with expectations staying below 50% after the bank struck a relatively upbeat tone on the economic outlook.

The ECB kept its main interest rate at 2% for the second straight meeting, with President Christine Lagarde saying the economy is “in a good place” and risks are more balanced.

Markets are awaiting Fitch’s review of France’s public finances late Friday after the September 8 confidence vote. Citi analysts said the agency’s sovereign model may indicate a slight improvement, and that a manual downgrade would mean Fitch sees a further shift in the balance of power toward borrowers over creditors since its last spring review.

Against the Japanese yen, the dollar climbed 0.4% to 147.76, after the US and Japanese governments issued a joint statement stressing that exchange rates should be market-determined and that excessive volatility and disorderly moves are undesirable.

Sterling fell 0.2% to $1.3545 after data showed the UK economy stagnated in July.

The offshore yuan held at 7.1219 per dollar, down 0.1%.

The Australian dollar slipped slightly to $0.665 but stayed near a 10-month high.