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Silver slips near $57 after stronger US manufacturing PMI boosts hawkish Fed bets
Silver prices were pressured as the ISM Manufacturing PMI rose to 55.6 in July from 53.3 in June, a sign US factory activity accelerated at its fastest pace in more than four years.
Silver (XAG/USD) traded around $57.20 on Monday, down 0.73% on the day, as a stronger US manufacturing report reinforced expectations that the Federal Reserve will keep policy restrictive, according to FXStreet.
The Institute for Supply Management reported its Manufacturing Purchasing Managers Index increased to 55.6 in July from 53.3 in June, topping market expectations of 54. FXStreet said the release pointed to strengthening momentum, with the Employment Index rising to 52.8 from 49.7 and the Prices Paid Index easing to 71.1 from 73, though it remained above the forecast of 70.3.
FXStreet added that hotter activity gives the Fed more flexibility to tighten further to fight inflation, and higher-for-longer rate expectations can weigh on silver because it is a yieldless asset.
The outlet also noted that silver tends to move with shifts in interest rate expectations and the US dollar, where a stronger dollar typically makes the metal less attractive for holders.
Latest closeSilver $57.77 ▼1.8%