Spot Silver rebounded on Friday, recovering from a one-week low of $74.01/oz. ahead of the key US CPI inflation report due later today, which may provide further clues over the Fed’s monetary easing path.
Annual headline consumer inflation in the US probably eased to 2.5% in January from 2.7% in December, according to market consensus.
And, annual core CPI inflation probably eased to 2.5% in January from 2.6% in December.
Silver’s 10% decline on Thursday lacked a clear catalyst, though losses in equities and cryptocurrencies pointed to forced liquidation across asset classes.
The white metal also faced certain pressure after stronger-than-expected US labor data prompted investors to pare back expectations of near-term Federal Reserve rate cuts.
The US economy added 130,000 jobs in January, a figure that topped expectations of 70,000, following a revised 48,000 job growth in December.
As a result, markets are now pricing in a 95% chance that the Fed will hold rates steady in March. Yet, investors still expect two 25 basis point rate cuts later this year, with the first likely in June.
Spot Silver was last up 4.93% on the day to trade at $79.03 per troy ounce.
Still, the white metal was on course for its third straight week of losses.
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