Silver surges to £47 an ounce as US jobs miss weakens Fed rate hike bets

Silver climbed to its highest level in six weeks on Friday and into the weekend, reaching over £47 per ounce as US employment data fell sharply short of expectations and traders reassessed the probability of a Federal Reserve rate rise. The metal gained 4 per cent in dollar terms, roughly $64 per troy ounce, after the Bureau of Labor Statistics reported that nonfarm payrolls contracted by 23,000 in July, the first outright decline in months and well below the 80,000 gain that economists had forecast.

The weak jobs report prompted a sharp repricing of Fed rate expectations. Traders cut their odds of a rate rise to the lowest level in weeks, sending the US dollar to a two week low and allowing bond yields to ease. Both moves favour precious metals, which generate no income: a softer dollar makes them cheaper for pound-based buyers, whilst lower yields improve their appeal relative to cash and bonds.

Silver's outperformance reflects industrial demand. The metal benefits from structural supply tightness that has persisted through 2026, with production unable to keep pace with demand from solar panels, electric vehicles, semiconductors and data centre expansion. For UK buyers, the move to £47 per ounce spot is a milestone, though remember that all-in cost includes dealer premium, VAT at 20 per cent, and any delivery or storage fees. This is not financial advice.