Silver Price News: Silver Recaptures Losses to End Higher

Silver prices nudged higher on Thursday, notching up modest day-on-day gains, following US services data which may have sent a positive signal on industrial demand.

Prices initially moved lower to around $31.45 an ounce, taking a lead from slight weakness in the gold price on Thursday. However, silver staged a modest rebound later in the day, climbing as high as $32.20 an ounce, compared with around $31.90 an ounce in late trades on Wednesday.

Silver’s modest move into positive territory on a day-on-day basis reflected stronger than expected US services figures released Thursday, which suggested US business activity in September grew to its highest level since February 2023. While silver takes direction from interest rates as a precious metal, it also responds to levels of economic activity due to its important role as an industrial metal.

By the same token, China’s recent economic stimulus measures have re-injected an element of bullish sentiment for silver, as Asia’s giant economy provides strong demand for industrial uses for silver such as solar panels, electronic circuits, aerospace technologies and medical applications.

Both silver and gold have also taken support from the recent uptick in geopolitical tensions, particularly after Iran became directly involved in Israel’s offensive against Hamas in Gaza and Hezbollah in Lebanon.

Looking ahead, Friday’s monthly US non-farm payrolls figures will be closely watched, along with the unemployment numbers for September, for signs of upcoming monetary policy changes.

Data from interest rate traders suggests the market is now backing a two-thirds majority chance of a 25-basis point interest rate cut by the US Fed in November, versus around a 33% chance of a larger 50-basis point cut.