Silver stabilizes near $64 as Fed hike odds ease
Silver held steady around $64/oz after a selloff. Fed hike odds for September fell to 62% from 68% following weaker ADP jobs data, while the dollar stayed near a two-week high amid safe-haven demand.
Silver stabilized around $64 an ounce on Wednesday after a recent selloff pushed prices to their lowest level in nearly two weeks, as investors reassessed the Federal Reserve’s rate outlook following a pause in the oil rally and weaker-than-expected US labor data.
US private businesses added 38,000 jobs in August, the fewest since January and below expectations of 47,000, signaling a broader cooling in the labor market.
Markets now price in a 62% chance of a September Fed hike, down from 68% before the ADP report but still well above around 40% a week ago, according to the CME FedWatch Tool.
Silver remained under pressure as the dollar held near a two-week high amid safe-haven demand, with investors weighing concerns over the economic impact of the energy shock and diverging monetary policy paths.
Meanwhile, the US said it had launched overnight airstrikes on targets in Iran, prompting retaliation from Tehran in the most serious escalation between the two countries in weeks.