Silver Soars Past $65 for the First Time, Gold Rises

Silver broke through $65 per ounce for the first time Wednesday, while gold also climbed after weak U.S. jobs data sparked expectations for interest rate cuts. The dollar weakened on the news, making precious metals more attractive to investors worldwide.

Silver jumped 2.8% in spot trading to hit a record high of $65.63 per ounce. Gold followed suit, rising 0.4% to $4,321.56 per ounce in spot markets, while U.S. gold futures gained 0.4% to $4,350.50.

The dollar index dropped near its lowest level in over two months, reached Tuesday. When the dollar weakens, it makes dollar-priced metals cheaper for buyers using other currencies. This typically boosts demand and pushes prices higher.

Here's what investors are watching next: Key inflation data is coming this week. The Consumer Price Index drops Thursday, followed by the Personal Consumption Expenditures index on Friday. The PCE is the Federal Reserve's preferred inflation measure, so it could influence their next interest rate decision.

Lower interest rates generally help precious metals because they reduce the opportunity cost of holding non-yielding assets like gold and silver. When rates fall, investors often shift money from bonds and savings accounts into metals.

Other precious metals also gained ground. Platinum surged 2.5% to $1,896.40, hitting its highest level in more than 14 years. Palladium held steady at $1,602.60 after reaching a two-month high earlier in the session.

The metals rally reflects broader concerns about economic growth and inflation. Weak job numbers suggest the economy might be cooling, which could prompt the Fed to cut rates sooner than expected. This environment typically favors precious metals as safe-haven investments.

For traders and investors, these moves signal continued volatility in currency and commodity markets. The relationship between dollar strength, interest rates, and metal prices remains a key driver for the sector.