Silver Price Plummets Over 10% as Fed Rate Cut Hopes Fade
The silver market took a hit on Thursday after the latest jobs data and unemployment rate came in higher than expected, further strengthening the case for the Federal Reserve to maintain interest rates unchanged.
The nonfarm payrolls rose by 130,000 in January, exceeding analysts' predictions of an addition of 55,000 payrolls. The unemployment rate also came in lower than expected at 4.3%, below the estimated 4.4%.
The XAG/USD pair plummeted by over 10% to $77.56 an ounce as a result, with silver futures for March 2026 deliveries declining by 8% to $77.205 an ounce. Gold also struggled, dipping below $5,000 per ounce in the session.
The decline in white metal prices sent shares of silver miners First Majestic (AG), Hecla Mining (HL), and Pan American Silver Corp. (PAAS) plummeting by 6.3%, 7.8%, and 6% respectively. The iShares Silver Trust (SLV) fell 8.7% to about $69.87.