Silver Price Slumps as Rate Hike Bets Soar Amid Strong US Jobs Data
The silver price (XAG/USD) has been holding losses near $66.00 due to expectations of a Federal Reserve interest rate hike, according to Bitget.
The price remains under pressure as stronger-than-expected US employment data fuels the expectation of tighter monetary policy. The August Nonfarm Payrolls rose by 162,000, outperforming the 56,000 forecast, with the unemployment rate holding steady at 4.1% and annual wage growth slowing to 3.1%.
The CME FedWatch tool indicates a 58.3% probability of a 25-basis-point Fed rate increase in September, while FXS Speechtracker scores suggest a clear shift toward tighter policy rhetoric from the Federal Reserve. Hammack's hawkish message emphasizes that inflation is 'too high' and that Fed policy is 'not restrictive', supporting a stronger Dollar narrative.
The recent conflict between the US and Iran has also contributed to rising crude oil prices, stoking fears of rekindled inflationary pressures. The technical analysis suggests a neutral near-term tone for XAG/USD, with price holding above the 50-day EMA but sitting just under the nine-day EMA.