Silver (XAG/USD) jumps nearly 4% on Friday as buying accelerates following a decisive break above the 50-day Simple Moving Average (SMA) near $62.
At the time of writing, the grey metal trades around $63.94 after briefly testing the $65 psychological mark
The advance comes after disappointing US Nonfarm Payrolls (NFP) figures drag the US Dollar (USD) and Treasury yields lower. The US Dollar Index (DXY) trades around 99.50, down nearly 0.45% on the day, while the benchmark 10-year US Treasury yield falls to around 4.60%, eight basis points below its intraday high of 4.68%. The US economy lost 23K jobs in July, even though experts had expected an increase of 80K.
The job growth for June was also revised down to 20K from the previously reported 57K. As a result, traders quickly trimmed bets on a September Fed rate hike, with the probability falling to around 42% from 67% a week ago, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as Silver.