Silver tops $66 for first time; gold up 1% on soft US labor market
Silver prices briefly surpassed $66 an ounce to a record high on Wednesday, while gold firmed, as hopes of rate cuts by the U.S. Federal Reserve were renewed after signs of a weaker labor market, and as escalating U.S.-Venezuela tensions boosted safe-haven demand.
Spot silver rose 2.8% to $65.55 an ounce, after touching an all-time high of $66.52 earlier in the session.
"Silver is pulling gold up with it ... there is some rotational money going out of gold and into silver, platinum and palladium," said Marex analyst Edward Meir.
"$70/oz (for silver) looks to be the next logical target in the short-term."
Spot gold gained 0.8% to $4,335.64 an ounce by 09:38 a.m ET (14:38 GMT), after rising over 1% earlier in the session. U.S. gold futures were also 0.8% up at $4,367.10.
Silver is up 126% this year, outpacing gold, which has notched a 65% annual rise.
On Tuesday, data showed a stronger-than-expected increase of 64,000 jobs in the U.S. last month, but the unemployment rate rose to 4.6%, its highest level since September 2021.
Weakness in the labour market could increase the likelihood of rate cuts, which in turn is beneficial for non-yielding assets like gold.
"Markets continue to see the Federal Reserve cutting its interest rates two times during the first part of 2026, which could continue to support gold over that period," said Bas Kooijman, CEO and asset manager of DHF Capital S.A.
Last week, the U.S. Federal Reserve delivered its third and final quarter-point rate cut of the year. Investors are now pricing in two 25-basis-point cuts in 2026.
Market now awaits November's Consumer Price Index due on Thursday, and Personal Consumption Expenditures price index on Friday.
U.S. President Donald Trump ordered a "blockade" of all sanctioned oil tankers entering and leaving Venezuela, in Washington's latest move to increase pressure on Nicolas Maduro's government, adding to safe-haven demand.
Platinum was up 2.3% at $1,892.60, its highest in more than 17 years. Palladium added nearly 1% to $1,618.44, touching its highest level since February 2023.
Source: Reuters.com
