XAG/USD retreats from a four-day rally as markets price in a 77% chance of a Fed rate increase by year-end.
Silver (XAG/USD) pulls back to $62.30 per ounce in European trading, ending a four-day winning streak. The decline follows growing expectations of a Federal Reserve interest rate hike later this year, with markets pricing in a 77% probability of an increase by December.
The retreat contrasts with last week’s 5.55% surge, driven by weaker-than-expected US jobs data. June’s Nonfarm Payrolls rose just 57,000, far below the 110,000 forecast, while unemployment dipped to 4.2%. Easing oil prices have also reduced inflation concerns, providing some support for non-yielding metals.
Investors await the US ISM Services PMI and Wednesday’s Fed June meeting minutes for further direction on monetary policy.