Silver fell more than 2% to around $82 per ounce on Thursday, erasing the previous session’s gains, after stronger-than-expected US labor market data reduced expectations for imminent Federal Reserve rate cuts. Nonfarm payrolls rose by 130K in January—more than double consensus estimates and a sharp acceleration from December—while the unemployment rate unexpectedly ticked down to 4.3%, underscoring the labor market’s resilience despite earlier signs of weakening.
The upbeat data pushed Treasury yields higher and strengthened the case for the Fed to keep interest rates on hold in the near term, with markets now largely pricing in the next rate cut for July instead of June. Even with the pullback, silver and other precious metals remained underpinned by safe-haven demand and the so‑called “debasement trade,” as investors seek protection against currency depreciation and rising sovereign debt burdens.
