Silver claws back post-NFP losses after briefly crashing below $65

Silver (XAG/USD) prices experienced a brief dip below $65 following a stronger-than-expected Nonfarm Payrolls (NFP) report, but managed to recover much of the loss shortly afterward. The precious metal dipped to $64.74 at one point, before buyers regained control. The US economy added 162,000 jobs in August, surpassing expectations for a 56,000 increase.

The revised July job figures also showed a gain of 21,000, up from the previously reported decline of 23,000. The US unemployment rate remained unchanged at 4.1%. The stronger labor market figures initially boosted the US Dollar and Treasury yields, negatively impacting Silver. However, these factors eventually weakened, allowing the metal to rebound by over $1 from its low.

The CME FedWatch Tool indicated a 60% chance of a 25-basis-point interest rate hike at the upcoming Fed meeting, compared to roughly 50% before the NFP release. The positive employment data increased the focus on the upcoming US inflation figures, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI). Governor Christopher Waller noted signs of disinflation and hinted at potential rate hikes based on the data.

Silver's price remains uncertain, trading near the 200-hour Simple Moving Average ($67.10) but slightly above the 100-hour SMA ($65.73). Immediate resistance is at the 200-hour SMA, while support is provided by the 100-hour SMA ($65.73) and further down at $64.74 and $63.32.