Silver tumbled below the $66 mark on Monday, dropping 0.79% to trade around $65.70 as traders reassessed Federal Reserve policy expectations following Friday’s robust US jobs report. The precious metal faces renewed selling pressure after nonfarm payrolls data exceeded forecasts, strengthening the case for the Fed to maintain its higher-for-longer interest rate stance or potentially resume rate hikes.
The stronger-than-expected employment figures have diminished hopes for near-term rate cuts, which typically benefit non-yielding assets like silver. Higher interest rates increase the opportunity cost of holding precious metals while boosting the dollar’s appeal. Traders and investors in commodities markets should expect continued volatility in silver and gold positions as rate expectations shift.
The selloff reflects broader risk-off sentiment across precious metals markets, with market participants repositioning ahead of upcoming inflation data and Fed commentary that could further clarify the central bank’s policy trajectory.
FXnCO Insight
Traders holding long silver positions should consider tightening stop losses or hedging exposure as hawkish Fed sentiment could drive further downside toward the $64 support level.
Source: FXStreet