Silver (XAG/USD) trades lower at around $60.95 on Thursday at the time of press, down 1.73% on the day.
The precious metal is facing profit-taking as the US Dollar (USD) regains momentum, with the US Dollar Index (DXY) advancing about 0.30% to trade near the psychological 100.00 level
The stronger US Dollar reduces Silver’s appeal for holders of other currencies. At the same time, safe-haven flows continue to support the Greenback as investors monitor ongoing geopolitical tensions in the Middle East, despite reports that Iran and Oman are moving closer to a temporary agreement on shipping through the Strait of Hormuz. Investors also remain focused on developments in the Oil market.
Hopes that supply disruptions could ease continue to support expectations of lower Oil prices, a scenario that would help contain global inflation pressures and reduce the likelihood of monetary tightening by major central banks. Market attention is now turning to Friday’s US Nonfarm Payrolls (NFP) report. Following mixed labor market indicators earlier this week, including a weaker-than-expected ADP Employment Change report, the official employment figures are expected to play a key role in shaping expectations for the Federal Reserve’s (Fed) monetary policy path as investors continue to reassess the outlook for interest rates.