Silver Price News: Silver Hits Fresh 11-Year High

Silver prices set another 11-year high on Friday, smashing through the $30.00 an ounce mark with ease as gold prices climbed above $2,400 an ounce to cap a strong week for the precious metals.

Silver punched through the psychologically important $30.00 an ounce level on Friday and went on to notch up an intra-day high of $31.58 an ounce. That was the highest silver price since February 2013. That compared with around $29.73 an ounce in late trades on Thursday.

Earlier in the week, signs of slowing US inflation and weaker-than-expected jobs numbers appeared to strengthen the case for interest rate cuts in the coming months. Expectations on the timing of a start to looser monetary policy have been dialled back this year, first from March, then to June and now September.

Lower interest rates, if they do eventually materialise, are seen as supportive for non-interest-bearing investments like gold and silver. And since the markets are forward-looking, they have been pricing in the chances of rate cuts later this year, albeit with plenty of uncertainty as it remains unclear when central banks will be able to tame inflation in line with their targets.

On the technical charts, the markets will now be watching to see if previous resistance at around $28.50 an ounce will turn into a support level, given last week’s surge to well above this level.

Looking ahead, a flurry of speeches by US Fed officials on Monday and Tuesday may help chart the path forward for interest rates, as the markets bet on the timing of a first rate cut by the US Fed.