Silver rallies as traders slash Fed rate hike odds to 52% for September following softer US jobs report.
Silver (XAG/USD) surged to a weekly high of $62.15 in early European trading Friday, extending gains after weaker-than-expected US Nonfarm Payrolls data reduced expectations for Federal Reserve rate hikes. The CME FedWatch tool now shows a 52% probability of a September hike, down from 66% pre-jobs report.
The metal remains in a broader bearish setup, trading below its 100-day moving average and the Bollinger middle band. The Relative Strength Index at 42 signals limited bullish momentum, with resistance at $63.50 and $70.00.
Geopolitical tensions, particularly US-Iran negotiations over Middle East stability, could influence silver’s trajectory. Iran’s warning of a swift response to US interference in the Strait of Hormuz adds to inflation concerns, potentially supporting safe-haven demand.