Weaker-than-expected US employment figures boost precious metals by reducing expectations for Federal Reserve tightening this year.
Silver (XAG/USD) climbed to $62.35, rising 2.32% on Friday, driven by a softer US jobs report that dampened Federal Reserve rate hike expectations. The Nonfarm Payrolls data showed only 57K jobs added in June, far below the 110K forecast, while May’s figures were revised downward.
The report triggered a shift in market sentiment, with traders now pricing in a 52% chance of a September rate hike, down from 66% earlier. A weaker US Dollar (USD) and lower yields on fixed-income assets lifted demand for non-yielding metals like silver and gold (XAU/USD).
Geopolitical tensions, including heightened US-Iran rhetoric over the Strait of Hormuz, further supported safe-haven flows into precious metals. Gold remained near recent highs, benefiting from the same macro backdrop.