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Silver Hits 12-Year High on Weak US Data, Rate Cut Bets
Thursday, 5 June 2025 16:58 WIB | SILVER |SILVER

Silver prices surged to $35.60 per ounce on Thursday, reaching their highest level since February 2012, as weak US economic data and a dovish Federal Reserve outlook fueled safe-haven demand ahead of Friday's non-farm payrolls report.

Expectations for a Fed rate cut in September have intensified following a string of disappointing indicators. The latest ADP report showed just 37,000 private-sector jobs were added in May, the weakest monthly gain since March 2023, while the ISM Services PMI dropped to 49.9, signaling the sector's first contraction in nearly a year.

Outside of economic fundamentals, geopolitical and trade tensions are adding to market unease. The US has doubled tariffs on steel and aluminum imports to 50%, stoking fears of renewed trade friction with key partners.

Meanwhile, investors are awaiting a high-stakes call between US President Donald Trump and Chinese President Xi Jinping, which could influence the outlook for global trade relations.

Source: Trading Economics

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