• Silver price jumps to near $31.00 as US yields decline after weak US NFP report.
• The payrolls data beats estimate but remain below May’s reading.
• Silver price strengthens after a Falling Channel breakout.

Silver price (XAG/USD) posts a fresh three-week high near $31.00 in Friday’s American session. The white metal strengthens as US bond yields weaken after the United States (US) Nonfarm Payrolls (NFP) report for June showed that the labor market lost momentum.

The Unemployment Rate rose to 4.1% from the estimates and the prior release of 4.0%. The number of individuals hired by employers came in higher at 206K from estimates of 190K but lower than the prior release of 218K, downwardly revised from 272K.

Also, Average Hourly Earnings declined expectedly in June. On month and annual basis, Average Hourly Earnings grew at a slower pace of 0.3% and 3.9%, respectively.

Soft wage data, downwardly revised payrolls and further rise in the jobless rate suggests that strength in the labor market conditions has eased further. This would boost expectations of early rate cuts by the Federal Reserve (Fed). Currently, market participants expect that the Fed will start reducing interest rates from September