Silver prices (XAG/USD) relinquished their earlier gains and fell just below the $28 mark during Tuesday’s trading session in New York. This decline followed the release of stronger-than-expected JOLTS Job Openings data for June. The data revealed 8.18 million new job vacancies, exceeding the anticipated 8.03 million, though slightly lower than the previously revised figure of 8.23 million.
The upbeat job openings data contributed to a rise in the US Dollar (USD), with the US Dollar Index (DXY) climbing to approximately 104.80. Additionally, the yield on the 10-year US Treasury bond edged up to around 4.18%.
Looking ahead, the Federal Reserve’s forthcoming interest rate decision will be a key factor for silver prices. The Fed is scheduled to announce its policy decision on Wednesday, with market expectations suggesting that rates will remain steady within the 5.25%-5.50% range. Investors also anticipate a dovish outlook on future rate adjustments.
The CME FedWatch tool indicates that futures markets are pricing in a potential 25 basis point cut in rates at the September meeting, with projections now leaning towards two rate reductions rather than the single cut previously suggested by the Fed’s latest dot plot.
