Silver Ends Week Around $60

Silver hovered around $60 an ounce on Friday even as weaker-than-expected US employment data reinforced expectations that the Federal Reserve may keep interest rates unchanged at its upcoming meeting. The US economy added just 29,000 jobs in September, well below the 90,000 expected, while the unemployment rate rose to 4.2% and annual wage growth eased to 3.0%, its weakest level since May 2021. The softer labor-market data further reduced expectations of an October rate hike, with money markets pricing in a near 20% chance of an increase this month, while the probability of a December hike remains above 80%. Expectations had already weakened following comments from Fed officials Philip Jefferson and John Williams, who called for more time to assess whether further rate increases are needed to contain inflatio

Silver steadied around $60.5 an ounce on Friday but was still set to lose about 5% for the week, pressured by higher oil prices amid concerns over a potential escalation in the US-Iran conflict. The metal also faced headwinds from a stronger dollar and elevated Treasury yields as investors assessed the latest Federal Reserve commentary and awaited a key US jobs report. Oil prices rose as the US considered deploying an additional aircraft carrier and 10,000 troops to the Middle East, raising the risk of further disruptions to regional energy supplies and renewed inflation pressures. Meanwhile, investors looked ahead to the September US jobs report, which could influence expectations for the Fed’s policy path. Minneapolis Fed President Neel Kashkari said it remains unclear how high interest rates will need to rise to bring inflation under control, emphasizing that the Fed must take the necessary steps to return inflation to its target.

Silver climbed back above $61 an ounce on Thursday, attempting to recover from near two-month lows after softer-than-expected US inflation data reduced expectations of a Federal Reserve rate hike in October. Gains were limited, however, by higher Treasury yields and a stronger dollar. US inflation rose less than expected in August, while the previous month’s price pressures were revised lower. Markets now see less than a 40% chance of an October hike, while still pricing in nearly a 90% probability of a December increase. 10-year Treasury yields reached their highest level since 2002, increasing the opportunity cost of holding non-yielding silver, while a firmer dollar also weighed on the metal. Focus now turns to Friday’s September nonfarm payrolls report, expected to show a gain of around 90,000 jobs, along with comments from Fed policymakers. US-Iran talks on reopening the Strait of Hormuz and ending the Middle East conflict also remain stalled.