Silver vaulted above the $65-per-ounce level for the first time on Wednesday, while gold edged higher after U.S. jobs data signaled a cooling labour market, reviving expectations of further interest-rate cuts next year and strengthening demand for precious metals.
Spot silver jumped 3.2% to $65.80 an ounce, after touching an all-time high of $65.99 earlier in the session. Spot gold rose 0.5% to $4,322.93 an ounce by 0407 GMT, while U.S. gold futures climbed 0.5% to $4,352.60.
“There is a major short squeeze underway in silver,” said Kunal Shah, head of research at Nirmal Bang Commodities. He added that supply has not responded as expected, even after the U.S. added silver to its critical minerals list.
“Every country planning to enter the data centre–AI space will need more silver,” Shah noted, adding that current momentum could push prices toward $70 an ounce in the near term.
The rally followed U.S. data showing the unemployment rate rose to 4.6% in November, above the 4.4% forecast in a Reuters poll. The softer labour data weakened the dollar and supported precious metals.
“The unemployment data has clearly helped gold and silver, while pressuring the dollar and prompting investors to seek alternative assets as a hedge against risk,” said Brian Lan, managing director at GoldSilver Central.
Investors are now turning their attention to the U.S. Consumer Price Index (CPI) due Thursday and the Personal Consumption Expenditures (PCE) index on Friday, the Federal Reserve’s preferred inflation gauge.
Last week, the Fed delivered its third and final 25-basis-point rate cut of the year, with Chair Jerome Powell’s comments seen as less hawkish than anticipated. Markets continue to price in two additional rate cuts in 2026, according to Fed funds futures.
Non-yielding assets such as bullion typically benefit in a low interest-rate environment.
Elsewhere, platinum gained 2.1% to $1,888.83 an ounce, after hitting a more than 14-year high, while palladium slipped 0.8% to $1,591.00, retreating from a two-month peak earlier in the session.
