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Silver prices dip as U.S. economic data signals potential Fed tightening

EditorRachael Rajan
Published 12/06/2023, 12:48 AM
© Reuters
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NEW YORK - Silver prices edged lower today, with XAG/USD trading near $24.18 as the market reacted to a mix of US economic indicators that could influence Federal Reserve policy decisions.

The US ISM Services PMI outperformed expectations with a reading of 52.7, suggesting continued expansion in the service sector. However, this positive sentiment was dampened by the JOLTs Job Openings report, which showed a disappointing 8.73 million job openings compared to the anticipated 9.3 million.

This combination of data points to a potential tightening of Fed policy ahead of its December meeting as investors assess mixed signals from the labor market. US Treasury yields experienced a slight recovery, and the Dollar Index (DXY) climbed to 103.75, even though there was an overall drop in daily yields.

Investors are now looking forward to additional labor market data for further clues on the Fed's next move, with Wednesday's ADP Employment Change report and Friday's critical labor metrics, including Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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