Spot Silver Dives 10% As Fed Rate Cut Hopes Fade After Recent Jobs Data

The latest jobs data and unemployment rate has further strengthened the case for the Federal Reserve to maintain the key interest rate unchanged.

• The XAG/USD pair was down 8% to $77.56 an ounce at the time of writing.
• Gold also struggled as the bullion dived to go below $5,000 per ounce in the session.
• Nonfarm payrolls rose higher than expected by 130,000 in January, according to the latest report from the Bureau of Labor Statistics (BLS) that came out on Thursday.

Spot silver prices fell more than 10% on Thursday as it tracked the bullion dip as strong U.S. labor data eroded the hopes of near-future Federal Reserve rate cuts and dampened the demand for safe-haven assets.  

The XAG/USD pair was down 8% to $77.56 an ounce at the time of writing. Silver futures for March 2026 deliveries declined 8% to $77.205 an ounce.

Meanwhile, gold also struggled as the bullion dived to go below $5,000 per ounce in the session. Spot gold (XAU/USD) was down nearly 2.1% to $4,975 at the time of writing. 

Strong Jobs Data

Nonfarm payrolls rose higher than expected by 130,000 in January, according to the latest report from the Bureau of Labor Statistics (BLS) that came out on Thursday. Analysts had expected an addition of 55,000 payrolls during the month, according to Dow Jones data cited by MarketWatch.

The January unemployment rate came in lower than expected at 4.3%, below the 4.4% estimate.

Key Rates To Remain Unchanged

The latest jobs data and unemployment rate has further strengthened the case for the Federal Reserve to maintain the key interest rate unchanged rather than going for rapid cuts in the coming FOMC meetings. 

The Federal Reserve in January had kept its benchmark rate unchanged as per market expectations. 

Silver Stocks

The iShares Silver Trust (SLV) fell 8.7% on Thursday, to about $69.87, at the time of writing. SLV was up roughly 4% for the year. Retail sentiment around SLV trended in ‘bearish’ territory amid ‘low’ message volume. 

The decline in white metal prices saw shares of silver miners First Majestic (AG), Hecla Mining (HL), and Pan American Silver Corp. (PAAS) fall 6.3%, 7.8%, and 6%, respectively, on Thursday.

Market Reaction

U.S. equities declined in Thursday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 1.1%, the Invesco QQQ Trust ETF (QQQ) fell 1.6%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.31%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory. 

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