Silver futures returned above $58 on Friday morning after opening lower, recovering from Thursday’s pullback. The move tracked shifting expectations for the Federal Reserve’s rate decision next week.
Silver returned above $58 on Friday, reaching $58.87 as of 8:28 a.m. ET after a softer start to the session. September futures had opened at $57.92 per ounce, down 0.2% from Thursday’s closing price.
The metal had pulled back on Thursday, when a stronger U.S. dollar contributed to the decline. Inflation risk, meanwhile, continues to limit any recovery for prices.
According to CME FedWatch, the consensus for next week’s Federal Reserve decision is still a hold, but that probability has declined to 64.2% from 87.2% last week. A better-than-expected initial jobless claims report on Thursday contributed to that shift in sentiment.
The rate outlook matters because silver pays no interest. Investors tend to shift into yield-bearing assets when interest rates rise, which limits demand and the metal’s appreciation potential.
Against Friday’s opening print, silver stood 4.3% above where it traded a week earlier. The opening price was down 2.5% from a month ago yet up 48.3% from a year earlier. For context, silver’s year-over-year growth reached 173.3% on May 14.
Source: Yahoo Personal Finance
Trading involves risk.
Risk Disclaimer
