Silver climbs to $65 for first time, gold up

Silver surged past $65 an ounce to record highs on Wednesday, while gold advanced after softer-than-expected US jobs data signalled a cooling labour market, fuelling bets on more interest rate cuts next year, reports Reuters.

Spot silver was up 3.4 per cent at $65.94 an ounce after touching an all-time high of $66.52 earlier in the session, extending a rally driven by tight supply, strong industrial demand and rising speculative interest.

"Silver has become an object of speculation within the options markets and fundamentally I think it's based on some clear views that the demand outlook remains very positive," said independent analyst Ross Norman.

"It's a critical mineral. It's a part of the green energy program. It's tight in every sense that supply dynamics are tight. So to that extent, speculators are swimming with the tide."

Gold prices also firmed, with spot gold rising 0.3 per cent to $4,317.65 an ounce by 1154 GMT, while US gold futures gained 0.4 per cent to $4,347.40.

Silver is up 128 per cent this year, and gold has climbed 65 per cent year-to-date.

Gold continues to be supported by dovish Federal Reserve expectations, economic uncertainty and geopolitical tensions, said ActivTrades analyst Ricardo Evangelista.

While nonfarm payrolls increased by 64,000 jobs, the US unemployment rate rose to 4.6 per cent in November, its highest level since September 2021.

Markets are waiting for crucial US inflation readings this week, with Consumer Price Index data due on Thursday and Personal Consumption Expenditures data on Friday.