Silver surges above $30 amid high T-bill yields, strong USD

Silver rose for the seventh straight day on Friday putting aside the jump in US Treasury bond yields and the dollar, after a strong jobs report calmed Federal Reserve officials about the employment situation in the US.

Nevertheless, the evolution on inflation seems to be stalled, gathering some attention of Fed officials.

The XAGUSD currency pair trades at $30.35, up over 0.80%.

The US economy created 256,000 jobs last month, surpassing forecasts for the benchmark non-farm payrolls (NFP). Forecasts expected 160,000 people to be added to the workforce, with private hiring totaling 223,000.

The unemployment rate dropped to 4.1%, with average hourly earnings slightly decreasing, influencing Fed rate cut projections.

Following the data release, traders expect the Fed to cut rates just once in 2025.

The US 10-year Treasury note skyrocketed to 4.788% before retreating five basis points (bps) to 4.739%. This consequently weighed on the greenback, as the USDJPY turned negative, yet close to remaining almost unchanged.

The DXY Dollar Index rose to 109.96, its highest level since November 2022. Recently, DXY pared some of its gains, and is presently at 109.55, up 0.36%.

During Friday’s Asian session, Bloomberg revealed that the Bank of Japan is still mulling its rate decision for January and is also increasing inflation forecasts due to the softening Japanese Yen. The odds for a rate hike in January are seen as a coin flip.