Spot Silver retreated on Monday, but remained not far from last Friday’s one-month high of $31.49 per troy ounce, as soft US data reinforced prospects of an interest rate cut by the Federal Reserve later this year.
Data showed last Friday that the unemployment rate in the United States had risen to 4.1% in June, or the highest level since November 2021, from 4% in May. A consensus of analyst estimates had pointed to a stable rate at 4%.
This week, market players will be closely watching Fed Chair Jerome Powell’s semi-annual Congressional testimony along with speeches by a slew of Fed officials.
US CPI inflation numbers for June due out on Thursday will also be in focus.
Markets are now pricing in about a 78% chance of a Fed rate cut occurring in September, according to the CME FedWatch tool, compared to roughly 63% a week ago.
The chances of a second rate cut in December have also increased.
Lower interest rates reduce the opportunity cost of holding Silver, which pays no interest.
As of 7:16 GMT on Monday Spot Silver was losing 0.74% to trade at $30.994 per troy ounce.
Silver Futures for delivery in September were losing 1.24% to trade at $31.297 per troy ounce.
The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching up 0.06% to 104.943 on Monday.
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