Silver prices rise, surpassing gold

According to Kitco's market report, Friday's trading session recorded mixed movements in the precious metals group, as silver prices rose sharply, surpassing gold in the context of investors considering between weakening US economic data, volatile bond yields and increased geopolitical risks in the Middle East.

Spot gold is trading around the threshold of 4,700.60 USD/ounce, up 0.23%, while spot silver is trading at nearly 79.230 USD/ounce, up 2.59% in the session.

This development shows that short-term cash flow is prioritizing silver - a metal that is usually more volatile than gold and reacts more strongly to economic growth expectations as well as market risks.

Kitco's analysis team said that the precious metals market is affected by a series of new US economic data, in which the number of initial jobless claims increased to 200,000, higher than last week. Although the increase is not too sudden, this data still reinforces the view that the US labor market is gradually cooling down.

Meanwhile, non-agricultural labor productivity increased by 0.8% in the first quarter, while labor costs per unit increased by 2.3%. The combination of increased productivity and high labor costs continues to make the market debate inflationary pressure, especially in the context of volatile energy prices.

These figures are seen as an important stepping stone before the upcoming non-farm payroll report, a factor that could strongly affect the monetary policy expectations of the US Federal Reserve" - experts at Kitco said.

Besides economic factors, according to Kitco, the market is also strongly dominated by geopolitical risks in the Middle East, especially related to the strategic Strait of Hormuz - the world's most important oil transport route.

Meanwhile, on the financial market, the USD index slightly decreased at the beginning of the session but then stabilized again. The yield of 10-year US Treasury bonds remained around 4.41%, reflecting that monetary policy expectations are still uncertain.

Usually when the USD and bond yields remain stable, precious metal prices will be under downward pressure. However, other factors such as geopolitical tensions and weaker-than-expected US labor data have overwhelmed that impact, helping gold and silver prices still maintain an upward trend" - Kitco analysis said.