Silver Falls After Weak US Services PMI

The catalyst was the Institute for Supply Management’s September services PMI, which eased to 54.9 from 55.4 in August and came in below market expectations, even as it remained above the 50 mark that separates expansion from contraction. The report showed 13 industries expanding and four contracting, but the slower pace reinforced the view that US activity is still growing without enough heat to force the Fed into a more hawkish stance.

That matters for silver because lower growth and softer policy expectations usually support precious metals, while a stronger dollar or higher real yields can cap gains. In this case, the market appeared to focus less on the growth slowdown as a refuge bid and more on the idea that the Fed may still keep rates elevated for longer, limiting the appeal of non-yielding assets.

The move also spilled into silver miners and related funds. The Global X Silver Miners ETF, SIL, fell to 86.63 on Oct. 6 and is trading just below its 50-day average of 91.11, while Wheaton Precious Metals closed at 137.65, below both its 50-day and 200-day moving averages, underscoring a broader pullback across the silver trade.

Treasury market signals were mixed, with US bond-trade sentiment from Adalytica.com still neutral, while US dollar trade signals strengthened on the day, another headwind for metals priced in dollars. Investors now face the next major catalyst in Fed communication and the run of upcoming US data that will shape whether silver’s recent rally extends or cools further.