• Silver price edged higher after the weak labor data initiated the dovish sentiment surrounding the Fed.
• US Initial Jobless Claims surged to over 8-month highs to 231K, surpassing estimates of 210K.
• Silver cheers safe-haven demand amid a stalemate in ceasefire negotiations in the Middle East.

Silver price extends its gains for the third consecutive session, trading around $28.50 per troy ounce during the Asian session on Friday. The increase in the value of the grey metal can be attributed to the latest employment data from the United States (US), which supports a more accommodative monetary stance by the Federal Reserve (Fed).

Unexpectedly, US Initial Jobless Claims surged to over 8-month highs, signaling a weakening labor market and potentially providing the Fed with room to commence its easing cycle sooner rather than later. Lower interest rates typically enhance the attractiveness of non-yielding assets such as Silver.

The US Bureau of Labor Statistics (BLS) released data indicating that the number of individuals filing for unemployment benefits exceeded expectations. Initial Jobless Claims for the week ending May 3 rose to 231K, surpassing estimates of 210K and showing an increase from the previous week's reading of 209K. Furthermore, traders will closely monitor next week's CPI and PPI releases for further insights into the Fed's monetary stance, given reservations expressed by some Fed officials about easing.

On the geopolitical front, Silver experienced heightened safe-haven demand amidst a deadlock in ceasefire negotiations in the Middle East. Israeli forces mobilized tanks and engaged in gunfire near populated areas of Rafah on Thursday. This escalation followed President Joe Biden's statement that the US would withhold weapons from Israel if a substantial invasion of the southern Gaza city were initiated, as per Reuters report.