Silver Price Dips to $29.22 Amid Strong US Jobs Data Impact

Silver price (XAG/USD) continues to navigate a downward trend, currently trading near $29.1615 with an intraday low of $29.0365.

The recent decline was triggered by positive U.S. Nonfarm Payrolls data, which reinforced expectations that the Federal Reserve might sustain elevated interest rates longer than previously anticipated.

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This optimism in the U.S. labour market bolstered the U.S. dollar, contributing significantly to the dip in silver prices.

Geopolitical Tensions and European Uncertainty Soften Silver’s Fall:

Despite the pressure from a stronger dollar, ongoing political uncertainties in Europe and geopolitical risks might buffer the fall in silver prices.

Market participants remain wary, avoiding significant commitments until the release of the latest U.S. consumer inflation figures and the Federal Open Market Committee (FOMC) decision on Wednesday, which could indicate the Fed’s rate cut timeline.

Dollar Strength and Rate Expectations Impact Silver:

The robust U.S. dollar, following the upbeat jobs report, has reduced the likelihood of an early interest rate cut. With the Fed potentially delaying cuts, expectations have adjusted to anticipate possibly just one rate reduction towards the end of the year.

This scenario has elevated U.S. Treasury yields, supporting the dollar and consequently, dampening silver’s allure.

Silver (XAG/USD) Price Forecast:

In technical terms, silver is at a crucial point. Currently priced at $29.228, it has seen a 1.67% drop. The pivot point at $29.06 is key; a sustained move below this could trigger further declines with support levels at $28.51, $27.98, and $27.37 on watch.

Conversely, resistance levels at $29.79, $30.54, and $31.51 could convert the bearish trend to bullish if breached. With the Relative Strength Index (RSI) at 38 and the 50-day EMA at $30.16 suggesting bearish momentum, traders are advised to monitor these technical indicators closely.

These developments in the U.S. economic landscape and silver’s technical responses offer investors insight into potential future price movements, emphasizing the importance of staying updated with macroeconomic indicators and market sentiment.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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