Silver rose above $62 per ounce on Friday, reaching its highest level since June 23 and heading for a nearly 6% weekly gain, as weaker-than-expected US jobs data dampened expectations for a near-term Federal Reserve interest rate hike.
US nonfarm payrolls grew by only 57,000 in June, the smallest increase in four months and well below the 110,000 forecast, leading traders to cut their bets on a September hike.
The CME FedWatch tool showed the probability of a rate increase falling to 50%, down from 66% before the data.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like silver.
The US dollar also weakened, heading for its biggest weekly drop since April, which further boosted precious metals.
Fed Chair Kevin Warsh also said this week that inflation expectations are moderating while reaffirming the central bank’s commitment to maintaining price stability.