Silver Breaks Out of Downtrend as US Labor Market Disappoints

Silver prices broke out of their downtrend on Friday, as the metal surged 3.25 percent to settle at $63.79 per ounce, clearing its 50-day moving average.

The move was triggered by a combination of factors, including a weak US labor market and falling bond yields.

The ADP data showed the private sector added just 44,000 jobs in July, well short of the 70,000 that economists had predicted. The Bureau of Labor Statistics then reported a net loss of 23,000 jobs in the month, against expectations of an 80,000 gain.

The unemployment rate did tick down to 4.1 percent, but it did little to soften the market's reaction. Falling bond yields and a softer dollar also contributed to the surge in silver prices, prompting a rotation into precious metals.