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Silver rebounds above $64 as weaker US jobs data clouds Fed tightening

Silver was up about 0.3% around $64.30 after ADP showed US private payrolls rose 38K in August, while markets still price a roughly 64% chance of a September rate hike.

Reported · Written up by our desk · Precious Metals

Silver rebounded in early trade, holding above $64, as weaker-than-expected US employment data tempered some momentum behind more hawkish Federal Reserve expectations. XAG/USD was around $64.30, up about 0.3% on the day after earlier losses.

According to FXStreet, the ADP Employment Change report showed the US private sector added 38K jobs in August, below forecasts for 47K and the prior reading of 46K. The softer figure points to cooling labor demand and could make it more complicated for the Fed to justify additional tightening.

Even with the labor-market relief, FXStreet said expectations for tighter policy remained elevated, with CME FedWatch indicating markets saw about a 64% chance of a rate increase at the September 15 to 16 meeting, up from 36% a week earlier. That outlook kept pressure on silver as higher Treasury yields, including the 10-year at 4.81% on Wednesday, reduce demand for non-yielding assets.

The next focus is Friday's Nonfarm Payrolls report, FXStreet added, which could further shift views on the Fed. The piece also noted that rising Middle East tensions have pushed oil higher, raising uncertainty around inflation and adding to the backdrop for rates and yields.

Latest closeSilver $65.91 ▲2.0%

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