Solid NFP, Silver Trims Gains
Silver prices surged on Wednesday (February 11th) after the release of US employment data triggered a rapid shift in interest rate expectations, but interest in the precious metal remained strong. Silver (XAG/USD) was trading around $84.72 per ounce, up +4.88% in today's latest update, marking a sharp recovery after significant fluctuations in the past two weeks.
The main trigger came from the US Nonfarm Payrolls (NFP) for January, which showed an increase of 130,000 jobs, while the unemployment rate fell to 4.3%. This figure was stronger than market expectations and immediately prompted market participants to reduce bets on imminent interest rate cuts—conditions that typically support the dollar and yields, while also acting as a brake on precious metals.
Despite this, silver remained strong as the market has not completely abandoned the scenario of policy easing in the second half of the year, especially after signs of slowing consumption emerged from previous data. Silver also benefits from its dual-world nature: as a monetary asset (safe-haven) and an industrial metal, allowing demand to remain stable as the market seeks a hedge while also assessing the real needs of the industrial sector.
Going forward, market participants will monitor whether the post-NFP strengthening dollar/yields continue and pressure precious metals, or whether volatility will again trigger safe-haven inflows. With price movements still extreme, silver has the potential to remain aggressive—either for a further rally or a rapid correction—depending on the direction of subsequent inflation data and the reaction of the interest rate market.
Source: Newsmaker.id
