Silver Rebounds From Post-NFP Lows as Dollar and Yields Retreat

Silver experienced a sharp decline following the release of stronger-than-expected US employment data, but rebounded as the initial market reaction faded. The metal initially dropped to an intraday low of $64.74, but recovered over $1 from that point.

The US added 162K jobs in August, exceeding market expectations for a gain of 56K. This led to a jump in the US Dollar Index (DXY) and benchmark 10-year Treasury yields. However, both metrics later retreated, allowing Silver to rebound.

Expectations surrounding the Federal Reserve's September monetary policy decision shifted following the employment report. Markets now assign around a 60% chance to a 25-basis-point interest rate hike at the September 15-16 meeting.