Silver prices surged nearly 5% on Friday, with CFDs on silver climbing to $78.737 per ounce, up 4.67%, as investors positioned ahead of key U.S. inflation data that could influence the Federal Reserve’s interest rate path.
The rally comes in a volatile week for global markets. While strong non-farm payroll data earlier had reduced immediate expectations of aggressive rate cuts, markets are still pricing in easing later this year. Year-end rate cut expectations have risen to around 59 basis points, up from 48 basis points last week, reflecting growing confidence that the Fed may respond to broader economic and market pressures.
Equity market weakness, particularly in technology and software stocks amid concerns over AI-driven disruption and margin compression, has also supported safe-haven demand for precious metals.
Investors are closely watching the U.S. Consumer Price Index release, where headline inflation is expected to rise 0.3% month-on-month and 2.5% year-on-year, with core CPI seen at similar levels. Any softer-than-expected reading could reinforce expectations of monetary easing, which typically benefits non-yielding assets like silver.
The sharp global rally has also lifted domestic silver futures, with MCX prices mirroring the international surge ahead of the data release.