Silver rose toward $29 per ounce, hovering near a one-week high as the dollar retreated on weak US labor market data which prompted traders to price in more aggressive interest rate cuts from the Federal Reserve.

Markets now see around a 40% chance of a supersized 50 basis point Fed rate cut this month, with well over 100 bps in total reductions being priced this year. Investors now look ahead to the August payrolls report to gain more insights on the state of the US labor market.

However, prospects of a US recession and economic uncertainties in top consumer China continued to weigh on commodity markets. Silver has been a major beneficiary of the global push towards renewable energy, particularly from the solar industry, which relies heavily on the metal for photovoltaic cells.

Source : Trading Economics