Silver Follows Gold Higher as Rate Cut Hopes Build

Silver (XAG/USD) tracked gold’s momentum, trading at $32.62 and reaching an intra-day high of $32.71. The metal is benefiting from renewed interest in precious metals amid softening U.S. macroeconomic data.

This week’s ADP employment report signaled weakening private-sector job growth, while initial jobless claims jumped to 241,000, marking the highest reading since February.

The ISM Manufacturing PMI also remained in contraction at 48.7, underscoring broad economic deceleration.

Stronger Dollar, Trade Talks Cap Upside Momentum

Despite the rally, gains in gold remain capped as the U.S. Dollar Index (DXY) holds near a three-week high. Optimism over renewed trade negotiations between the U.S. and China—following remarks from China’s Commerce Ministry—has lent support to the greenback, dampening safe-haven demand.

“The stronger dollar is temporarily capping gains in bullion,” said a Hong Kong-based metals strategist. “But if the NFP misses, we could see a breakout above $3,270.”

Markets Price in Four Fed Rate Cuts by Year-End

According to CME FedWatch Tool data, markets are now pricing in four 25-basis-point rate cuts by December. With inflation cooling and labor data softening, the Fed may be forced to act sooner than initially projected.