Silver tops US$65 for first time; gold firms as US unemployment rate climbs

[BENGALURU] Silver vaulted past the US$65 mark for the first time on Wednesday (Dec 17), while gold edged higher as weaker US labour data rekindled expectations of interest-rate cuts, pressuring the US dollar and boosting demand for precious metals.

Spot silver climbed 2.8 per cent to a record high of US$65.63 an ounce. Gold edged up alongside it, with spot prices rising 0.4 per cent to US$4,321.56 an ounce by 10.30 am.

US gold futures gained 0.4 per cent to US$4,350.50.

“A lot of the wrap-ups of the year have highlighted that the top-performing asset class is precious metals. I would attribute silver appreciation today to speculative flow,” GoldSilver Central MD Brian Lan said.

The rally followed US data showing the unemployment rate rose to 4.6 per cent in November, above a Reuters poll forecast of 4.4 per cent.

The unemployment data has definitely helped precious metals and weakened the US dollar, prompting investors to look for other asset classes offering higher returns as a hedge against risk, Lan added.

The US dollar index hovered near a more than two-month low touched on Tuesday, making greenback-priced bullion more attractive to overseas buyers.

Last week, the US Federal Reserve delivered a third and final quarter-point interest rate cut for the year, while Chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected.

Traders still expect two cuts of 25 basis points each in 2026. Non-yielding assets like bullion typically perform well in a low-interest-rate environment.

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Investors now await key US inflation readings, with the Consumer Price Index due on Thursday and the Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation gauge, due on Friday.

Meanwhile, US Treasury Secretary Scott Bessent said on Tuesday that Kevin Warsh and Kevin Hassett were both qualified to lead the Federal Reserve, adding that any Trump pick should have “an open mind.”

Elsewhere, platinum added 2.5 per cent to US$1,896.40, a more than 14-year high, while palladium was steady at US$1,602.60 after rising to a two-month high earlier in the session. REUTERS