Silver Price Forecast: XAG/USD gains near $61.00 as Fed rate hike odds decline
Silver price (XAG/USD) gains ground after registering losses in the previous day, trading around $61.00 per troy ounce during Asian hours on Friday. Non-yielding Silver gains support as softer-than-expected US employment figures reduced expectations for further interest rate hikes by the Federal Reserve (Fed).
Financial markets now price in nearly a 77.9% chance that the Fed will keep benchmark interest rates steady at its upcoming October policy meeting, up from 74% before the labor report. This shift reflects growing sentiment that a cooling job market will prompt policymakers to hold rates steady.
The repricing in rate expectations follows a disappointing US labor market performance, with Nonfarm Payrolls expanding by only 29,000 positions in September. The print fell well short of Wall Street estimates targeting 90,000 additions and marked a steep slowdown from August’s revised figure of 133,000. Further signaling labor slack, the US unemployment rate rose slightly to 4.2%, even as the labor force participation rate edged upward to 61.8%.
Meanwhile, safe-haven demand remains supported by deteriorating geopolitical conditions in the Middle East as Saudi-backed forces in Yemen launched a major offensive to reclaim territory from Houthi forces. Tensions escalated sharply after the Iran-aligned group seized control of the Bab el-Mandeb strait, a crucial maritime chokepoint between the Red Sea and the Gulf of Aden that provides a vital bypass route for regional crude exports, avoiding the Strait of Hormuz.
US rates seen easing as recent repricing pressure fades
According to TD Securities, the recent backup in yields has been driven by “higher Fed pricing, growth expectations, and oil,” but their rates strategists now believe that “rates should breathe a sigh of relief” as that pressure abates. Set against the backdrop of the post-payrolls bull-steepening in US Treasuries and markets sharply pricing out further near-term Fed hikes, TD’s view underscores a shift toward a more benign rates environment after the latest bout of repricing.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Resend - Updated version 3 - C.H. Robinson will acquire RXO for 5.8 billions USD to expand its truck brokerage business
Correction: RXO company name added to the headline Reuters, October 5 — Freight broker C.H. Robinson Worldwide (CHRW.O) announced on Monday it will acquire RXO (RXO.N) for $5.8 billion through a cash-and-stock transaction, aiming to strengthen its position in the North American truck brokerage sector. The merged logistics giant, with a combined market value of $25 billion, will primarily integrate this technology-driven truck brokerage business into C.H. Robinson’s North American surface transportation division, which contributes more than two-thirds of the company’s revenue. RXO also offers transportation management and last-mile delivery services. Its shares surged 23% in early trading, while C.H. Robinson’s stock dropped 10%. RXO shareholders will receive $17.25 in cash and 0.0856 shares of C.H. Robinson for each RXO share, valuing the company at $30.25 per share—a 29% premium to last Friday’s closing price. This deal will expand C.H. Robinson’s “last-mile” delivery coverage across the U.S. and help it win more large corporate clients, strengthening its position in the highly competitive truck brokerage market. CEO Dave Bozeman stated the deal will enable the company to "create a larger and more resilient North American third-party logistics provider." After completion, the company expects to achieve $300 million in net operating cost synergies within two years and anticipates the transaction will be accretive to adjusted earnings per share within nine months. Over the past year, as AI agents took over freight pricing, pickup and delivery coordination, and in-transit cargo monitoring, C.H. Robinson reduced its workforce. Meanwhile, RXO reported annual losses in both 2024 and 2025, but its profits beat market expectations last quarter thanks to improved freight rates. U.S. trucking rates have rebounded due to driver shortages driven by regulatory policies, benefiting freight brokers and boosting their revenues. However, volatile diesel prices are squeezing margins, as fuel surcharges and spot rates often lag behind cost increases, resulting in short-term cash flow pressures. The deal is expected to close in the first half of 2027, after which RXO shareholders will hold an 11% stake in the combined company. RXO shares have outperformed the broader S&P 500 benchmark over the past year. https://tmsnrt.rs/3U8qpkf (For the convenience of non-English speakers, Reuters has automated the translation of this report into several languages. As automated translations may contain errors or lack required context, Reuters does not guarantee the accuracy of the automated text and provides it for readers' convenience only. Reuters accepts no liability for any damage or loss caused by the use of automated translation.)
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