Silver rallied toward $30 per ounce and was set to advance over 7% this week, underpinned by speculations that the US Federal Reserve will deliver a supersized 50 basis point rate cut next week.

Analysts pointed to media reports from Financial Times and the Wall Street Journal suggesting the Fed's decision would be a close call, as well as higher US jobless weekly claims as the main factors driving recent expectations. Markets are currently assigning a 57% chance that the Fed will deliver a 25 basis point rate cut, with a 43% odds seen for a larger 50 bps reduction, according to CME's FedWatch Tool.

Additionally, markets are evaluating demand prospects in China, the world's top consumer, after mixed economic indicators, along with the growth of the renewable energy sector, where silver is a crucial component in solar panel production.

Source : Trading Economics