Silver Price Forecast: XAG/USD rebounds to near $64, US private labor data awaited

Silver price (XAG/USD) shows signs of recovery, climbing close to $64.00 in the early European trading session on Wednesday. The precious metal is facing downward pressure due to rising US Treasury yields and hawkish Federal Reserve (Fed) expectations. On Wednesday, the 10-year US Treasury Yields reached a record high of 4.81%, the highest since November 2023.

Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium further fueled hawkish bets, with a 67% chance of a rate hike in the upcoming policy meeting according to the CME FedWatch tool. Fed Governor Michael Barr emphasized the need for rate hikes if inflation does not decline rapidly. The US ADP Employment Change data for August is set to be released at 12:15 GMT, with estimates suggesting the creation of 48K new jobs, slightly higher than July's 44K.

As XAG/USD trades at $64.05, the pair remains below the 20-day Exponential Moving Average at $65.33, hinting at a slightly bearish tone. The Relative Strength Index (RSI) at 47.72 indicates waning bullish momentum. On the upside, the next resistance lies at the 20-day EMA around $65.33, and a daily close above this level may help alleviate current downside pressure and potentially bring Silver closer to its recent peak.

Silver is a highly traded precious metal, often viewed as a store of value and a hedge against inflation. Investors can acquire physical Silver in the form of coins or bars, or trade it through Exchange Traded Funds (ETFs). Silver's price is influenced by various factors such as geopolitical events, interest rates, and the US Dollar's performance.

Geopolitical instability or recession fears can lead to a surge in Silver prices due to its safe-haven status, though less pronounced than Gold's. As a yield-free asset, Silver typically benefits from lower interest rates, while a stronger Dollar tends to suppress Silver prices, while a weaker Dollar can boost them. The industrial demand for Silver, particularly in electronics and solar energy, also plays a significant role in determining its value.

Silver prices often mirror Gold's movements, and the Gold/Silver ratio can help investors assess the relative valuation of both metals.