Silver prices plummeted below $69 on Friday, trading around $68.90 and marking a sharp 6.74% decline as traders reacted to robust US employment data. The stronger-than-expected jobs report triggered a surge in the US Dollar, creating significant headwinds for the precious metal and intensifying selling pressure across commodity markets.
The employment figures have fundamentally shifted Federal Reserve expectations, with market participants now pricing in a more hawkish monetary policy stance. A stronger dollar makes dollar-denominated commodities like silver more expensive for international buyers, dampening demand and accelerating the selloff. The white metal’s steep intraday drop signals increased volatility in precious metals markets as macro data continues to drive positioning.
Traders across forex and commodity desks are reassessing positions as the labor market strength suggests the Fed may maintain elevated interest rates longer than previously anticipated, creating further dollar strength potential.
FXnCO Insight
Silver traders should expect continued volatility and potential downside pressure as dollar strength persists, with key support levels now critical for near-term directional bias.
Source: FXStreet