Silver prices rush to three-week highs as US yields taper off

Silver prices rose in European trade on Friday on track for the third straight profit, scaling a three-week high and approaching three-year highs as US 10-year treasury yields lose ground.

The white metal is heading for the largest weekly profit since early April amid improving investment demand and hopes of increasing actual demand in China. 

Prices 

Silver prices rose 1.5% today to $28.77 an ounce, the highest since April 19, with a session-low at $28.23, after closing up 3.7% yesterday, the second profit in a row, and the largest since April 3 following weak US data. 

The white metal hit a three-year high at $29.80 an ounce before entering a short-term correction.

Weekly Trades

Silver prices are up 8% so far this week, on track for the first weekly profit in three weeks, and the largest since early April.

US Yields 

US 10-year treasury yields fell 0.3% on Friday on track for the second straight session, plumbing four-week lows at 4.420%. 

The development comes after unemployment data showed more signs of a slower US labor sector, and stronger odds of interest rate cuts this year.

US Rates

Following the data, the odds of a Fed 0.25% interest rate cut in June rose to 9%, and to 21% for July, and to 70% for September. 

According to the Fedwatch tool, investors are now expecting two Fed interest rate cuts overall this year. 

Chinese Data

Earlier Chinese trade balance data showed that imports and exports rose past estimates in April, in another sign of improving economic performance and actual demand.