Silver tops US$66 for first time; gold up 1% on soft US labour market
Silver prices soared to a record high, surpassing US$66 per ounce, while gold gained momentum as hopes for US Federal Reserve rate cuts grew following weak labour market data on Wednesday (December 17).
- Spot silver surged to a new all-time high, trading above US$66 per ounce for the first time.
- Gold prices rose by approximately 1%, influenced by a soft US labour market report.
- The labour data, which showed the unemployment rate climbing to 4.6%, increased market expectations
Meanwhile, escalating tensions between the US and Venezuela further boosted demand for safe-haven assets.
Spot silver surged nearly 4% to US$66.22 an ounce, briefly hitting an all-time high of US$66.88 during the session.
"Silver is lifting gold... there’s a shift of investment out of gold into silver, platinum, and palladium," said Edward Meir, analyst at Marex. "The US$70 per ounce mark seems like the next logical target in the short-term."
Spot gold rose 0.7% to US$4,334.01 an ounce by 1.56pm ET (18.56 GMT), following an earlier gain of over 1%.
US gold futures closed 1% higher at US$4,373.90.
This year, silver has surged by 129%, far outpacing gold, which has increased by 65%.
Labour market data released on Tuesday (December 16) showed an unexpected rise of 64,000 jobs in November, but the unemployment rate climbed to 4.6%, its highest since September 2021.
The market's perception of weaker labour conditions has raised the likelihood of future rate cuts, which could benefit non-yielding assets like gold.
"Markets are expecting the Federal Reserve to cut interest rates twice in the first half of 2026, which would continue to support gold," noted Bas Kooijman, CEO of DHF Capital S.A.
In the previous week, the US Federal Reserve made its final quarter-point rate cut for the year, and investors are now anticipating two more 25-basis-point reductions in 2026.
Attention now turns to Thursday (December 18)’s release of November’s Consumer Price Index and Friday (December 19)’s Personal Consumption Expenditures price index.
US President Donald Trump has ordered a "blockade" on all sanctioned oil tankers entering and leaving Venezuela, a move to increase pressure on President Nicolás Maduro’s government, further driving demand for safe-haven assets.
Platinum rose by 2.2% to US$1,890.60, reaching its highest level in over 17 years, while palladium climbed 2% to US$1,635.61.
Reuters
