Silver (XAG/USD) rebounds on Wednesday and trades around $60.35, up 3.19% at the time of writing.
The white metal is supported by a weaker US Dollar (USD) following softer-than-expected US economic data and comments from Federal Reserve (Fed) Chair Kevin Warsh
Speaking at the European Central Bank (ECB) Forum in Sintra, Warsh said the Fed would not provide forward guidance and would adopt a new approach to make better policy decisions. He also noted that inflation risks have eased, putting pressure on the Greenback and supporting precious metals. On the macroeconomic front, the ADP Employment Change report showed that US private payrolls increased by 98K in June, below market expectations of 113K and following a gain of 122K in May.
Meanwhile, the Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) declined to 53.3 in June from 54 previously, also missing market expectations. Markets are now focused on Thursday’s Nonfarm Payrolls (NFP) report, which could provide fresh guidance on the Federal Reserve’s next monetary policy decisions. Despite Wednesday’s rebound, interest rate expectations remain a key driver for precious metals.