Silver Surges to $61.40 as Yields Retreat, NFP Looms
The Silver price has risen to near $61.40 due to a slight correction in US Treasury yields, which has improved the appeal of non-yielding assets like Silver. However, the broader trend of US bond yields remains firm as Federal Reserve officials have signaled more interest rate hikes. According to an FXS Speechtracker score, Fed's Logan delivered a notably more hawkish message, with a 9.2/10 score standing well above the 8.1/10 historical average.
The emphasis on higher yields and the need for additional tightening is in tension with explicit calls for at least 50 bps more in rate hikes to ensure inflation returns to 2%. The FXS Fed Sentiment Index rose by 1.68 points to 136.59, confirming a solid move deeper into hawkish territory.
Investors are keenly awaiting the US Nonfarm Payrolls (NFP) data for September, which will be published at 12:30 GMT. The consensus is that nonfarm payrolls will rise by 90,000 in September, down from 162,000 in August, while the unemployment rate is forecast to remain unchanged at 4.1%.
The XAG/USD holds decisively below the 20-day exponential moving average (EMA) at $63.48, keeping the near-term tone bearish as price remains capped by this short-term trend indicator. The Relative Strength Index (14) at 41.64 stays below the neutral 50 line, hinting at persistent downside pressure.