Silver prices rallied in European trade on Monday to a three-week high, expanding gains for the third straight session and about to trade above $30 an ounce once more as the dollar tumbled against major rivals.

Prices are also boosted by hopes of increasing actual demand in China following positive data, as authorities continue to take aggressive measures to boost the economy.

The Price

Silver prices rose 1.25% to $29.99 an ounce, the highest since December 18, with a session-low at $29.41.

On Friday, silver added 0.2%, the second profit in a row away from a three-month trough at $28.75, as the greenback stalled.

Silver rallied 21.5% in 2024, marking the second yearly profit in three years, and the heftiest since 2024 on strong haven demand.

US Dollar

The dollar index fell 0.7% on Monday away from 26-month highs at 109.53 against a basket of major rivals. 

Investors are shunning big buying positions before important US labor data later this week, which would offer fresh pricing on the likelihood of a US interest rate cut this month.

US Rates

According to the Fedwatch tool, the odds of a January 0.25% interest rate cut by the Federal Reserve stood at just 11%.

Richmond Fed President Thomas Parkin said on Friday that the Fed’s interest rate must remain restrictive until inflation reliably hits 2%.

Chinese Demand 

Earlier Beijing data showed the services sector grew past estimates in December, in yet another sign of recovery.

Chinese authorities raised the wages of government workers last week in a step that would pump $20 billion into the economy.