Dollar Rebound Weighs on Silver Ahead of Crucial US Jobs Report
The US Dollar's rebound has put pressure on Silver prices, causing XAG/USD to fall by about 1.7% on Thursday. The metal traded near $60.95 as the US Dollar Index rose 0.30% to around 100.00 ahead of Friday's Nonfarm Payrolls report.
Investors are closely watching the labor market data, which could influence expectations for Fed monetary policy. A strong US Dollar reduces Silver's appeal for holders of other currencies and safe-haven flows continue to support the Greenback amid ongoing geopolitical tensions in the Middle East.
The market is also focused on developments in the Oil market, where hopes that supply disruptions will ease are supporting expectations of lower Oil prices. This scenario could help contain global inflation pressures and reduce the likelihood of monetary tightening by major central banks.