US Jobs Data Triggers Silver Price Decline Amid Tighter Monetary Policy Expectations
The price of Silver fell sharply by 1.94% to ₹237,658 due to the strengthening US dollar and expectations of tighter Federal Reserve monetary policy following robust employment data.
The US nonfarm payrolls increased by 162,000 in August, surpassing market expectations of 56,000. The unemployment rate remained steady at 4.1%, while annual wage growth eased to 3.1%.
This resilient labor market lifted expectations of a September Fed rate hike to nearly 65%, putting pressure on precious metals. However, Fed Governor Waller indicated that continued progress toward the 2% inflation target could support holding rates at current levels.
The global silver market is heading toward a sixth consecutive structural deficit, with 762 million troy ounces drawn from stocks since 2021. The 2026 deficit is projected to widen to 46.3 million ounces from 40.3 million ounces in 2025.