Silver Falls, Market Awaits NFP
Silver (XAG/USD) weakened sharply on Thursday, moving below $75/oz, extending its correction after failing to maintain its daily high from the previous session.
Despite a relatively calm market environment, the white metal remained under pressure as the "mild" risk-off sentiment was not strong enough to boost safe-haven demand. This correction also aligns with the broader weakening in the precious metals complex following a rally earlier in the week.
Market participants' focus now turns to Friday's US Nonfarm Payrolls (NFP), which is seen as a key determinant of Fed policy expectations. For non-yielding assets like silver, changes in interest rate expectations are usually immediately felt through the dollar and yields.
The stabilization of the US dollar has added modest pressure and triggered profit-taking after the strong rally in recent weeks. Although the medium-term macro environment still provides room for support (if the market tilts back toward easing), many investors are choosing to reduce exposure while awaiting clearer signals from US data.
In the short term, silver's movement is likely to remain "attached" to US data headlines and changes in Fed expectations. Without any significant geopolitical escalation, the market tends to consolidate and move volatile after reaching its latest high.
Source: Newsmaker.id
