Spot Silver rebounded over 1% on Monday after having recorded a sizable loss of 6.8% on Friday on the back of hot US employment data that bolstered the US Dollar.
A much stronger-than-anticipated US Non-Farm Payrolls report cooled investor expectations of an early interest rate cut by the Federal Reserve this year.
Employers in all sectors of the US economy, excluding farming, added 272,000 jobs in May, a figure that easily outstripped market expectations of 185,000.
The latest data also came above the average monthly job growth of 232,000 over the preceding 12 months.
Markets are now pricing in about a 50% chance of a Fed rate cut occurring in September, compared with 70% last Thursday – a day before the jobs data release, according to the CME FedWatch tool.
The Federal Reserve is largely expected to leave borrowing costs on hold at its June 11th-June 12th policy meeting, with market focus likely on remarks made by Chair Jerome Powell and on a new set of FOMC economic projections.
US CPI inflation numbers for May are also due out on Wednesday.
As of 7:23 GMT on Monday Spot Silver was gaining 1.24% to trade at $29.541 per troy ounce.
Last Friday, the commodity registered its steepest single-day loss since February 2nd 2021.
Silver Futures for delivery in July were gaining 0.68% to trade at $29.640 per troy ounce.
The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging up 0.24% to 105.190 on Monday.
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