Silver Prices Steady Amid Easing Tensions and Softer Labor Market
Silver prices are holding steady near $59.50 per troy ounce on Tuesday, up 2% for the day but facing pressure from fading geopolitical tensions and a softer US labor market reading.
The news that an announcement regarding the reopening of the Strait of Hormuz is expected soon has triggered a sharp unwind of risk premiums in commodity markets.
While a confirmed reopening would remove support for Silver, cheaper energy and improved global trade conditions favor industrial activity, which accounts for roughly half of Silver demand.
The ADP Employment Change is expected to slow to 70K in July from 98K, ahead of Friday's Nonfarm Payrolls report. A run of soft prints would revive expectations that the Fed has reached the end of its tightening cycle, weakening the US Dollar and clearing the path for precious metals.