• Silver price hovers near $28.00 as investors shift focus to the US Inflation data for August.
• Higher US Dollar and bond yields restrict the upside of the Silver price.
• The Fed is widely anticipated to start reducing interest rates this month.

Silver price (XAG/USD) edges higher above $28.00 in Monday’s European session. The white metal trades in a tight range, with the downside remaining supported near $27.70. The upside in the Silver price remains restricted as the US Dollar (USD) and bond yields perform strongly as traders pare bets supporting the Federal Reserve (Fed) to start the policy-easing process aggressively this month.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, surges to near 101.70. 10-year US Treasury yields soar to 3.75%. Historically, higher yields on interest-bearing assets ceil Silver’s upside, given that it increases the opportunity cost of holding an investment in non-yielding assets, such as Silver.

The US Dollar and bond yields strengthened after the release of the United States (US) Nonfarm Payrolls (NFP) data for August, which indicated that current labor market health is not as bad as it appeared from the official employment data of July.