By Maria Agustina Patti, Financial Markets Strategist Consultant to Exness
Silver prices rebounded slightly after the release of the jobless claims data today. The figures showed a decline in claims, but less than expected. However, yesterday’s robust US labor market data reignited concerns that the Federal Reserve may delay rate cuts in 2026. Nonfarm payrolls rose more than the consensus estimate, while the unemployment rate unexpectedly fell to 4.3%.
These figures, coupled with recent cautious remarks from several Fed officials, suggest that monetary easing may remain off the table unless inflation or employment conditions weaken substantially. Meanwhile, markets are now bracing for Friday’s inflation print. A hotter-than-expected CPI reading could strengthen treasury yields and weigh on non-yielding assets such as silver.
Still, the downside may be cushioned by geopolitical tensions and the diversification away from the dollar that fuel demand for precious metals. The US-Iran diplomatic standoff shows little sign of resolution, while the Russia-Ukraine conflict continues to cast a shadow over broader risk sentiment, which may help limit downside risk.