Silver Jumps as US Data Weakens Dollar, Tempers Fed Bets

Silver prices surged over 4% to a one-month high as weaker-than-expected US ADP employment data weighed on the US Dollar and prompted traders to scale back expectations for Federal Reserve rate hikes. This broad-based dollar weakness benefited commodity-linked currencies and precious metals, despite one Fed official noting that he is not calling for a dramatic increase in interest rates.

Mixed Signals Emerge from Middle East Geopolitics

Developments in the Middle East presented a complex picture for safe-haven assets, as the US Treasury lifted some Iran-related sanctions and Iran reportedly reached a shipping deal with Oman for the Strait of Hormuz. However, persistent regional risks were highlighted by Houthi claims of a missile strike on a Saudi tanker, which tested alternative oil export routes.

Industrial Metals Complex Shows Strength on Supply Issues

The broader industrial metals market demonstrated underlying strength, with copper prices on the LME surging above $14,000 per tonne. Analysts attributed the breakout in copper to tightening physical market conditions and strong demand for prompt delivery.