Silver Rebounds From Two-Week Lows

Silver rose above $65 an ounce in afternoon trading Wednesday, recovering from two-week lows as the US dollar and Treasury yields pulled back from recent highs. Investors are awaiting US payrolls data on Friday for further clues on the Federal Reserve’s policy path. Oil prices hovered around six-week highs as traders weighed elevated supply risks from ongoing Middle East hostilities against signs that crude was still reaching the market. Meanwhile, the latest ADP report showed US private businesses added 38,000 jobs in August, the weakest increase since January and below expectations of 47,000, pointing to a broader cooling in the labor market. Markets now price in a 66% chance of a September Fed hike, up from around 40% a week ago, according to the CME FedWatch Tool.

Silver stabilized around $64 an ounce on Wednesday after a recent selloff pushed prices to their lowest level in nearly two weeks, as investors reassessed the Federal Reserve’s rate outlook following a pause in the oil rally and weaker-than-expected US labor data. US private businesses added 38,000 jobs in August, the fewest since January and below expectations of 47,000, signaling a broader cooling in the labor market. Markets now price in a 66% chance of a September Fed hike, compared with around 40% a week ago, according to the CME FedWatch Tool. Silver remained under pressure as the dollar held near a two-week high amid safe-haven demand, with investors weighing concerns over the economic impact of the energy shock and diverging monetary policy paths. Meanwhile, the US said it had launched overnight airstrikes on targets in Iran, prompting retaliation from Tehran in the most serious escalation between the two countries in weeks.

Silver traded around $64 an ounce on Wednesday, hovering at a two-week low as investors assessed the prospects of Federal Reserve interest rate hikes following a sharp rise in global bond yields and oil prices. Global bond yields climbed amid mounting inflationary pressures and growing expectations of imminent rate hikes, with US Treasury yields reversing the decline triggered by Secretary Scott Bessent’s announcement of an expanded buyback program. Fed Chair Kevin Warsh’s pledge to combat inflation further reinforced the hawkish outlook, with markets now pricing in around a 70% chance of a Fed rate hike this month. Attention now turns to the ADP employment report due Wednesday and Friday’s nonfarm payrolls for further clues on the Fed’s policy path. Meanwhile, oil prices extended gains amid escalating hostilities between the US and Iran, further heightening inflation risks.