Silver Slumps Below $66 Amid Strong US Jobs Report

Silver prices have declined to around $65.70 as the strong US employment report boosts expectations of an interest rate hike by the Federal Reserve (Fed) and supports the US Dollar.

The Nonfarm Payrolls (NFP) report showed that the US economy added 162K jobs in August, surpassing market consensus of 56K. The Unemployment Rate remained unchanged at 4.1%, aligning with expectations, while annual Average Hourly Earnings growth eased slightly to 3.1% from 3.2% previously.

The strong labor market and inflation risks stemming from higher energy prices contribute to expectations of a potential interest rate hike as soon as the central bank's next meeting.

However, Fed Governor Christopher Waller stated that he would favor keeping interest rates unchanged if upcoming indicators confirmed that inflationary pressures were easing. Investors' attention turns to the US Producer Price Index (PPI) and Consumer Price Index (CPI), due on Thursday and Friday, respectively.