Silver Strengthens, Focus Shifts to US Jobs Report
Silver prices strengthened on Wednesday (February 11), recovering the previous session's losses as the US dollar weakened and US bond yields fell. Spot silver rose 3.6% to $83.69 per ounce at 3:48 PM WIB (07:48 GMT), signaling a return to safe-haven demand after the market digested disappointing US economic data.
The main trigger came from stagnant US retail sales data in December, reinforcing signs that the consumption engine is losing steam. This combination of weak data boosted market expectations that the Federal Reserve has room to be more dovish, weakening the dollar and boosting precious metals.
Market focus now turns to the January US jobs report (NFP), which will be released the same day. Weaker-than-expected jobs figures tend to strengthen the case for interest rate easing—a condition that is usually positive for silver and gold because the appeal of non-yielding assets increases when yields fall.
On the other hand, safe-haven demand has been helped by a rotation away from dollar-denominated assets, amid growing market sensitivity to policy uncertainty in Washington. As the dollar declines and yields weaken, the "opportunity cost" of holding precious metals shrinks, making it easier for silver to attract buying.
However, market participants remain cautious as precious metal volatility remains high following extreme movements in recent weeks—from speculative rallies to sharp corrections. This means that silver's gains could quickly reverse if the NFP data triggers a major reversal of positions in the dollar and yields.
Source: Newsmaker.id
