Silver hits seven-week high at £48.74 an ounce as Chinese industrial demand surges

Silver hit a seven-week high on Monday, climbing to around £48.74 an ounce as weak US employment data shifted market expectations sharply toward Federal Reserve rate cuts. The white metal gained about 7 per cent, outpacing gold's 6.6 per cent gain, as investors repositioned into precious metals on falling rate-hike odds.

The catalyst was July's disappointing nonfarm payrolls, which fell by 23,000 against expectations of an 80,000 gain. Markets rapidly repriced the chances of a September Fed rate rise from 55 per cent to just 44 per cent. When central banks are seen as likely to cut rates, assets that generate no income become more attractive, and silver benefits from softer yields and a weaker US dollar alongside gold.

Silver's particular strength on the day reflects robust industrial demand. Chinese imports of silver-bearing ores surged 62.5 per cent annually in June, reaching 219,000 tonnes, driven by expanding production of solar panels and electricity grids. Solar panels, semiconductors, electric vehicles and data-centre expansion together account for roughly 58 per cent of global silver consumption and continue to outpace mine supply. This structural tightness has now persisted for six consecutive years.

For UK buyers, the seven-week high brings sterling spot price to around £48.74 per ounce. Remember that all-in cost includes dealer premium, 20 per cent VAT, and any delivery or storage fees. This is not financial advice.