Silver Price Forecast: Weak US payrolls fuel breakout above 50-day SMA
Silver (XAG/USD) jumps nearly 4% on Friday as buying accelerates following a decisive break above the 50-day Simple Moving Average (SMA) near $62. At the time of writing, the grey metal trades around $63.94 after briefly testing the $65 psychological mark.
Silver (XAG/USD) surged nearly 4% on Friday, breaking above the 50-day Simple Moving Average (SMA) around $62. Currently, the metal is valued at $63.94, having briefly touched the psychological $65 mark. The rise follows weak US Nonfarm Payrolls data, causing US Dollar (USD) levels and Treasury yields to fall. The US Dollar Index (DXY) sits at 99.50, down about 0.45% for the day.
US job growth for July was revised downward to 23K, well below the anticipated 80K. Consequently, traders have reduced expectations of a September Fed rate hike, dropping to around 42% from 67% a week earlier, according to the CME FedWatch Tool. Lower interest rates diminish the opportunity cost of holding non-yielding assets like Silver.
On the daily chart, XAG/USD shows a bullish near-term outlook, as it trades above the 21-day and 50-day SMAs. Momentum supports this outlook with the Relative Strength Index (RSI) in the low-60s and the MACD indicator moving into positive territory with a strong bullish spread and expanding histogram. The next resistance lies at $65, followed by the 100-day SMA at $69.
A break above this cluster could open the path to the higher resistance near $75. Conversely, immediate support is at the 50-day SMA ($62) and the psychological $60 level, with the 21-day SMA at $58 and the $55 horizontal level forming a deeper demand zone.
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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