Silver Prices Swing Wildly Amidst Mixed Macro Signals
Silver prices swung wildly this week, with the center moving slightly higher. The price was initially pressured lower by stronger-than-expected nonfarm payrolls, which added 162,000 jobs in August, exceeding expectations of 55,000.
The US dollar weakened for consecutive sessions, however, driving a rebound and causing spot quotes to shift from discounts to premiums. Macro factors were mixed, with some bearish signals, including a higher 2-year Treasury yield, and some bullish signals, such as the continued central bank gold purchases.
Inventory saw a slight buildup of 6 mt, while ETF holdings edged up by 0.39% MoM. The market awaits guidance from Friday's CPI data and next week's Fed rate decision, with wild price swings expected in the short term.