Silver: XAG Drops More Than 2%

Silver fell more than 2% to below $73.5 per ounce, extending its three-week slide as a firmer US Dollar and recalibrated Federal Reserve expectations outweighed recent support from softer inflation. The DXY climbed as resilient nonfarm payrolls, solid private hiring, and expectations of continued US growth tempered the case for rapid rate cuts, sustaining rate differentials and pressuring dollar-denominated metals. The move follows January’s speculative surge, driven largely by Chinese retail flows, that pushed silver to record highs before a sharp unwind toward $64 as leveraged positions were liquidated. With Asian liquidity normalizing after holidays, focus now turns to Fed minutes and the core PCE release for clearer guidance on the policy path, while industrial demand signals remain secondary to currency dynamics in driving near-term price action.