XAG/USD falls 0.6% amid rising oil prices and stronger-than-expected US jobs data, reducing Fed rate cut expectations.
Silver (XAG/USD) declined 0.6% to $74.60 in European trading on Wednesday, pressured by a third consecutive day of gains in oil prices. WTI crude rose 1.4% to $93.00, its highest level in over a week, driven by renewed US-Iran tensions after recent military exchanges in the Middle East.
Historically, oil and precious metals have moved inversely during geopolitical conflicts, as higher energy costs stoke inflation fears and reduce expectations for Federal Reserve rate cuts. April’s US JOLTS job openings also exceeded forecasts, with employers posting 7.618 million new jobs versus 6.88 million estimates, further dampening hopes for near-term monetary easing.
Investors are now focused on Friday’s US Nonfarm Payrolls report for May, which could influence Fed policy expectations and market sentiment.