Silver Price Outlook: XAG/USD Stays Above $36 at Multi-Year Highs

Silver Price Outlook: XAG/USD Maintains Position Above $36 at Multi-Year Highs

Silver price continues to trade strongly, holding steady above $36.00 per troy ounce during the Friday Asian session, marking the highest level since February 2012.

Key Drivers Behind Silver's Rally

The rise in silver prices is largely fueled by increased safe-haven demand as weak economic data from the United States raises hopes of a Federal Reserve interest rate cut.

• US Weekly Initial Jobless Claims surged to 247,000, surpassing the expected 235,000, signaling soft labor market conditions.
• The US ADP private sector jobs report showed a modest increase of 37,000 jobs in May, well below the market consensus of 115,000.
• The ISM Services Purchasing Managers Index (PMI) declined to 49.9 in May from 51.6 in April, indicating a contraction in the services sector.

Market Implications

The underwhelming US economic data strengthens market expectations for the Fed to consider monetary easing in upcoming policy decisions, benefiting precious metals like silver.

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