Silver Tumbles Below $66 as Strong NFP Report Supports US Dollar

Silver prices slipped below $66 on Monday as the strong US employment report revived expectations of an interest rate hike by the Federal Reserve, supporting the US Dollar.

The Nonfarm Payrolls (NFP) report released on Friday showed that the US economy added 162K jobs in August, exceeding market consensus, while the Unemployment Rate remained unchanged at 4.1% and annual Average Hourly Earnings growth eased to 3.1% from 3.2% previously.

This has reinforced the view that the US labor market remains strong enough for the Fed to maintain a restrictive monetary policy stance, contributing to expectations of a potential interest rate hike as soon as the central bank's next meeting.