Silver fell more than 2% to below $73.50 per ounce, extending a three-week decline as a stronger US dollar and shifting Federal Reserve expectations outweighed recent support from softer inflation data. The DXY index advanced as resilient nonfarm payrolls, robust private-sector hiring, and expectations of continued US growth weakened the case for rapid rate cuts, maintaining yield differentials and pressuring dollar-denominated metals.
The pullback follows January’s speculative surge—driven largely by Chinese retail inflows—that propelled silver to record highs before a sharp reversal toward $64 per ounce as leveraged positions were unwound. With Asian market liquidity normalizing after the holiday period, attention is now turning to the upcoming Fed minutes and the core PCE inflation release for clearer guidance on the policy outlook. In the near term, currency and rate dynamics remain the primary drivers of price action, while industrial demand signals continue to play a secondary role.
