Silver Rebound Limited Despite Fed Rate Hike Pause Hopes

The Silver market saw a slight rebound on Monday, though it remains within a tight trading range. This follows a significant slowdown in US job creation in September, as reported in the Nonfarm Payrolls data, which also showed an unexpected rise in the unemployment rate. These developments have reduced the likelihood of further interest rate hikes by the Federal Reserve in October, providing some relief to precious metals like Silver.

However, global borrowing costs are surging due to turmoil in bond markets, driven by concerns over persistent inflation fueled by high oil prices. This has limited the retreat in US yields, capping Silver's potential upside.

Technically, XAG/USD is recovering but remains below a key support level at $62.40, which also serves as the neckline of a Head & Shoulders pattern. Momentum indicators in the 4-hour chart are neutral, with the Relative Strength Index hovering around the 50 midline and the Moving Average Convergence Divergence showing slight positivity. A break above $62.40 could target the September 25 high near $65.00, followed by resistance around $68.00. On the downside, support is found at Friday's low of $59.69, with further downside risk toward the $56.60 area.

Silver's price movements are influenced by various factors, including its safe-haven status, industrial demand, and the strength of the US Dollar. While it often follows Gold's trends, its valuation can also be assessed through the Gold/Silver ratio, which reflects the relative pricing between the two metals.