XAG/USD falls to $57.20 after July ISM PMI jumps to 55.6, exceeding forecasts and bolstering Fed tightening expectations.
Silver prices slid 0.73% to $57.20 as stronger-than-expected US manufacturing data reinforced expectations for prolonged Federal Reserve rate hikes. The ISM Manufacturing PMI rose to 55.6 in July, its highest level since 2020, beating consensus estimates of 54.
The report showed broad-based strength, with the Employment Index rebounding to 52.8 and the Prices Paid Index remaining elevated at 71.1. Four of five sub-indices accelerated, signaling robust sector momentum and persistent inflationary pressures.
Higher interest rate expectations increase the opportunity cost of holding non-yielding assets like silver, weighing on demand despite easing geopolitical risks.