Silver Partially Recovers from Monday's Sharp Drop Amid Rate Expectations
Silver prices have staged a partial recovery from Monday's sharp drop of 4.6% after soft US labor and confidence data reduced the odds of an October Fed hike to 51.5%. Despite this, the metal still trades below its pre-drop level at $61.52 per ounce, with an intraday low of $60.30 on September 30.
The rebound is attributed to lower rate expectations, which have trimmed the pressure on non-yielding metals like silver. However, yields remain high at 5.25%, and a strong dollar index at 101.37 continues to weigh on the metal's price. The US jobs report next week will be crucial in shaping the odds of an October Fed hike and its impact on silver prices.
Silver is also sensitive to industrial demand, with Latin American producers like Mexico and Peru accounting for about 38% of global mine output. Pan American Silver (NASDAQ:PAAS) traded up 0.81% at $46.14, while iShares Silver Trust (NYSEARCA:SLV) offers direct bullion exposure.