Silver Rally Gains Momentum as Softer Fed Bets and Industrial Demand Support Prices

Silver climbed 3.3% to $65.69 on Monday, extending its rally after July U.S. payrolls unexpectedly fell by 23,000. The data cut the market-implied probability of a September Federal Reserve rate hike from about 67% to 44%, weakening a key headwind for non-yielding metals.

A softer dollar and lower Treasury yields further supported silver, while stronger industrial demand, particularly from China’s solar and power-grid sectors, provided an additional fundamental tailwind. Gold’s rally and renewed geopolitical uncertainty also strengthened sentiment across precious metals.

Trader outlook: Silver’s rally is supported by both macro and industrial factors, but Wednesday’s U.S. CPI is the next key test. Softer inflation could reinforce lower-rate expectations and extend upside momentum, while hotter data could lift yields and the dollar, increasing pressure on silver.