Silver loses over 3.5% ahead of US payrolls data

Silver prices lost over 3.5% in European trade on Friday away from one-week highs on active profit-taking, while US 10-year treasury yields rebounded.

The losses came ahead of the US payrolls report for May, crucial for gauging the health of the economy and the path ahead for monetary policies.

Prices 

Silver prices fell 3.6% today to $30.21 an ounce, away from a week high at $31.55.

Prices rallied 4.4% on Thursday, marking the second profit in a row as both the dollar and US treasury yields declined. 

US Yields 

US 10-year treasury yields rose 0.4% today away from two-month lows at 4.275%, pressuring the non-yielding assets.

The gains come ahead of the crucial US monthly jobs data, which the Fed relies on to gauge the conditions of the US labor sector.

US Rates 

The odds of a 0.25% Fed interest rate cut in September now stand at 67%, and the odds of such a cut in November stand at 80%. 

The Federal Reserve is convening next week to discuss future policies and the developments of the economy, and it’s widely expected to maintain rates flat. 

US Jobs Data

Later today, the US payrolls report is eagerly awaited, expected to show the addition of 182 thousand new jobs to the economy in May.

The unemployment rate is expected at 3.9%, while average hourly earnings are expected up 0.3% last month.