Silver hovered around $41.2 per ounce on Tuesday, near its highest level since 2011, as mounting expectations for US Federal Reserve rate cuts underpinned demand for precious metals. Investors awaited benchmark revisions to US jobs data covering April 2024 to March 2025, with economists forecasting downward adjustments of up to 800,000 jobs, signaling the Fed may be trailing its full-employment mandate. Focus also turned to two key inflation readings this week that could guide the next policy move, with the August producer price index due Wednesday and the consumer price index on Thursday. Markets are currently pricing in an 89% probability of a 25 basis point cut at next week’s meeting, while some traders continue to position for a larger 50 basis point move. On the industrial front, resilient demand from solar, electric vehicles, and electronics has tightened the physical silver market at a time when supply remains constrained.
