Spot Silver traded in proximity to a 14-year high of $40.85/oz. on Tuesday, supported by rising expectations of a Federal Reserve interest rate cut this month and a broadly weaker US Dollar.
Markets are now pricing in about a 90% chance of a 25 basis point rate cut in September.
This week’s US Non-Farm Payrolls report could provide more clues on the size of the expected rate cut by the Fed.
Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.
The US Dollar Index was hovering above an over 1-month low of 97.536.
A weaker dollar makes dollar-priced Silver more appealing to international investors holding other currencies.
In addition, robust industrial demand continued to support Silver prices. The latest data showed that China’s solar cell exports had risen over 70% in the first half of 2025, underpinned by strong demand from India.
Spot Silver was last down 0.49% on the day to trade at $40.52 per troy ounce.
Meanwhile, Silver futures for December delivery were last up 1.40% to trade at $41.295 per troy ounce.
Year-to-date, the white metal has surged 40.16%.
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