Silver Prices Rise After ADP Data Miss, Rate Cut Speculation Increases
Silver prices rose in Wednesday's trading session, after ADP data showed a sharp decline from estimates which fueled hopes of a faster Fed interest rate cut. Spot silver prices moved in the range of around $36.20–$36.55 per ounce, reflecting a strengthening of around 1–1.5% from the previous session. This surge occurred amid a weakening US dollar and increasing industrial demand, especially from the electronics and solar energy sectors.
The latest data also recorded a positive movement of almost 0.47% in spot silver to the level of $36.20, while maintaining the year-to-date upward trend of 25.3%.
The main drivers of the current silver rally are a combination of a weakening dollar and tight supply conditions, as well as concerns about a global recession. A weaker dollar makes dollar-denominated assets such as silver more attractive in terms of price. In addition, the existence of a five-year silver supply deficit—due to lack of investment in the mining sector and increasing physical demand—is an additional catalyst. The absence of significant geopolitical tensions has also prompted investors to turn to alternative safe-haven assets such as silver to diversify their portfolios.
Technically and in terms of market sentiment, silver's short-term momentum still looks strong. Analysts from Permutable AI point to a move above the psychological threshold of $36.00 as an important breakout level, while signals from the RSI indicate a potential short-term correction—but bullishness remains dominant.
Some forecasts even call silver the "trade of the decade" because the combination of recovering industrial supply and demand, as well as the still-high gold-to-silver ratio, indicate a significant upside opportunity ahead. However, the risk of a short-term correction remains, especially if the dollar moves strongly again or there is a hawkish statement from a major central bank.
Source: Newsmaker.id (Arl)
