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Spot silver prices fell on Monday but remained within touching distance of last month’s high of $31.49 per troy ounce hit last Friday, as soft U.S. data raised the prospect of the Federal Reserve cutting interest rates later this year.

Data showed last Friday that the U.S. unemployment rate rose to 4.1% in June, the highest level since November 2021, from 4% in May. A consensus of analyst estimates had called for a steady rate of 4%.

This week, market participants will be closely monitoring Fed Chairman Jerome Powell’s semi-annual testimony before Congress, as well as speeches from a host of Fed officials.

The US CPI inflation figures for June, due to be released on Thursday, will also be in the spotlight.

According to the CME FedWatch tool, markets are now pricing in a 78% chance that the Fed will cut rates in September, up from about 63% a week ago.

The chances of a second rate cut in December have also increased.

Lower interest rates reduce the opportunity cost of owning silver, which does not earn interest.

At 07:16 GMT on Monday, spot silver prices fell 0.74% to trade at $30.994 per troy ounce.

Silver futures for September delivery lost 1.24% to trade at $31.297 a troy ounce.

The U.S. dollar index, which measures the greenback’s relative strength against a basket of six other major currencies, rose 0.06% to 104.943 on Monday.