NFP Data and Oil Prices Weigh on Silver Price

Investors are eagerly awaiting the release of the August Nonfarm Payrolls (NFP) data, which is expected to rebound to 95k after a decline in July. According to TD Securities, this number will provide insight into the Federal Reserve's monetary policy outlook.

The unemployment rate is projected to remain steady at 4.1%, with balanced risks suggesting limited change in headline labour market conditions. A modestly hawkish employment report would reaffirm the Fed's attention on inflation, but it would be unlikely to push the Committee towards interest rate hikes, analysts say.

Higher oil prices due to restricted energy shipments through the Strait of Hormuz could fizzle out the recovery move in the Silver price. Higher oil prices prompt global inflation expectations, increasing fears of interest rate hikes from central banks.