Silver climbed to its highest level in seven weeks as unexpectedly weak U.S. employment data prompted investors to reduce bets on another Federal Reserve interest-rate increase. September silver futures surged as much as 3.6% to $63.85 a troy ounce after the U.S. jobs report, later extending the rally to a seven-week peak of $66.49. The metal’s advance above $65 marked its strongest showing since June and reinforced the bullish momentum that has also lifted gold.
The rally subsequently lost some steam, with spot silver falling 1.3% to $64.48 after settling at $65.32 in the previous session. Despite that reversal, silver remains up about 70% in 2026, highlighting the strength and volatility of its broader advance.
The move to a seven-week high followed news that the U.S. economy unexpectedly lost 23,000 jobs in July. Economists had forecast an increase of about 80,000. Earlier figures were also revised lower. June’s employment gain was cut to 20,000, while May’s was reduced to 63,000, bringing average monthly job growth over the past year down to 34,000.
Although the unemployment rate edged lower to 4.1%, labor-force participation fell to 61.4%, its lowest level in more than five years. The figures added to evidence that the labor market is weakening as the Fed weighs persistent inflation against slower economic activity. Interest-rate markets responded by lowering the probability of a September rate increase. Treasury yields declined, improving the relative appeal of non-yielding assets such as silver and gold.
After reaching its seven-week high, silver’s direction now depends heavily on U.S. inflation figures. Consumer-price data showed annual inflation easing for a second consecutive month to 3.4% in July. Markets subsequently assigned roughly a 40% probability to a quarter-point September rate increase, down from nearly 50% previously. A softer producer-price report could reduce those odds further and provide silver with enough support to retest the recent $66.49 high. Stronger-than-expected inflation, however, could revive expectations for additional monetary tightening and deepen the pullback. Lower interest rates generally support silver because the metal pays no interest. Falling U.S. yields can also weaken the dollar, making silver less expensive for buyers using other currencies.
Silver’s seven-week high was part of a broader precious-metals rally. December gold futures rose 2.3% to $4,401 an ounce following the employment report, also reaching their highest level since mid-June. Gold has since tested the $4,400 region, with technical analysts identifying $4,500 as the next significant resistance level. A clear move above that threshold could strengthen sentiment across the precious-metals complex and provide additional momentum for silver.
The rally has also been notable because gold and silver have advanced despite a firm U.S. dollar and higher crude-oil prices. That suggests metal-specific investment flows, rather than a general currency-debasement trade, are playing an important role. Silver’s dual role as a precious and industrial metal adds another layer of support. It is widely used in solar panels, electrical infrastructure, and other technologies central to the clean-energy transition. Chinese imports of silver-bearing ores increased 62.5% from a year earlier in June to 219,000 tonnes, indicating that industrial demand remains strong despite sharp price swings. Some institutional strategists expect that combination of monetary and industrial demand to push silver above $80 an ounce by the end of 2026, with longer-term projections reaching $100 by 2030. Such forecasts remain uncertain and depend on economic growth, interest rates, and industrial consumption.
Silver’s reversal after touching $66.49 shows that the market may struggle to hold gains without further support from inflation data and falling rate expectations. Nevertheless, the move to a seven-week high confirms that buyers have regained control following the metal’s earlier correction.
The immediate question is whether silver can establish support above $65 and make another attempt at $66.49. A break beyond that peak could extend the rally, while a sustained move below $64 would suggest that profit-taking is beginning to outweigh bullish momentum. For now, weakening U.S. employment, reduced expectations for a September Fed increase, and strong industrial demand continue to underpin silver. But the rapid retreat from its seven-week high also serves as a reminder that volatility remains one of the defining features of the silver market.
