Silver Price Forecast: US Dollar rebound pressures XAG/USD ahead of US jobs report
Silver (XAG/USD) trades lower at around $60.95 on Thursday at the time of press, down 1.73% on the day. The precious metal is facing profit-taking as the US Dollar (USD) regains momentum, with the US Dollar Index (DXY) advancing about 0.30% to trade near the psychological 100.00 level.
Silver prices tumble as US Dollar strength pressures XAG/USD ahead of key US jobs data
On Thursday, silver (XAG/USD) fell to $60.95, marking a 1.73% decline for the day. This price drop follows the US Dollar's (USD) resurgence, with the US Dollar Index (DXY) gaining roughly 0.30% and nearing the psychologically significant 100.00 level. The stronger US Dollar diminishes silver's attractiveness for holders of other currencies.
Meanwhile, safe-haven demand for the Greenback persists as investors keep a close eye on Middle East geopolitical tensions, despite tentative progress between Iran and Oman regarding shipping through the Strait of Hormuz. Moreover, investors remain vigilant about Oil market developments, anticipating potential supply disruptions could reduce Oil prices and curb global inflation, thereby lowering the odds of interest rate hikes by major central banks.
Market focus now shifts to Friday's US Nonfarm Payrolls (NFP) report, which will likely influence expectations for the Federal Reserve's (Fed) monetary policy course. Traders will also observe the impact on US Treasury yields and the US Dollar following the NFP release, as they are primary short-term factors affecting silver prices.
In the one-hour chart, XAG/USD is currently at $60.94, maintaining a mildly neutral-to-bearish stance as the metal stays above the 100-period simple moving average ($59.76) and 200-period SMA ($58.88). However, it is hindered by a descending trend-line resistance near $61.59. The Relative Strength Index (RSI) around 39 indicates fading upside momentum, suggesting that rallies towards the trend-line may face challenges unless buyers regain control.
Downside support lies near the previously resistant $60.00 level, with the 100-period SMA ($59.76) and the 200-period SMA ($58.88) bolstering a broader demand zone ahead of the more distant horizontal floor at $56.60. On the upside, the downward-sloping resistance trend line at $61.59 presents the first hurdle bulls must clear to ease current price caps and set the stage for a constructive short-term recovery towards the recent high of $62.91.
Ghiles Guezout, a Market Analyst with expertise in stock market investments, trading, and cryptocurrencies, notes the technical analysis was assisted by an AI tool.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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