Silver Prices Soar This Week, What's Behind It?

Silver prices were buoyant throughout the week, after the United States economy unexpectedly lost jobs in July, weakening the case for the next interest rate hike by the US central bank (Federal Reserve/The Fed).

Referring to Refinitiv data, silver in the final trading session of the week, Friday (7/8/2026), closed at US$63.55 per troy ounce, surging 3.37% from the previous day’s trade. Over the week, silver soared 10.27% point-to-point (ptp).

US non-farm payrolls fell by 23,000 in July 2026, compared with expectations of an increase of around 80,000. June’s employment figure was revised down to an increase of 20,000 and May’s to 63,000, lowering the 12-month average to 34,000 jobs.

The unemployment rate edged down to 4.1%, while labour force participation fell to 61.4%, the lowest in more than five years.

The report marked the first monthly contraction in payrolls since February 2026 and added to evidence that the US labour market is losing momentum just as the Fed weighs persistent inflation against signs of weakening employment.

Interest rate markets quickly repriced after the data, lowering expectations of a Fed hike in September. US Treasury yields also fell to 4.617%, the lowest in seven days.

“Two days of falling bond yields and a week of dollar weakness appear to have removed various obstacles blocking the path of gold and silver,” said Tai Wong, an independent metals trader, as quoted by Reuters on Sunday (9/8/2026).

The reaction reversed some of the pressure that had previously weighed on precious metals as investors braced for the possibility that stubborn inflation would force the Fed to maintain tight monetary policy.

Silver typically benefits from expectations of lower interest rates because bullion offers no yield, making it relatively more attractive when returns on interest-bearing assets decline. Falling yields can also weigh on the US dollar, lowering the cost of the metal for buyers using other currencies.

The July employment report complicates the Fed’s next decision. Policymakers must now weigh inflation concerns against a labour market that recorded an overall decline in payrolls and weaker hiring in previous months.