Silver Price Analysis: Rebounds 1.2% on Weak GDP, 62K ADP Print

Markets were spooked on Wednesday as US economic data missed big time, causing safe haven flows into silver. ADP Non-Farm Employment Change came in at 62,000 vs 114,000 expected and 147,000 previous. Q1 GDP shrank 0.3% vs 0.2% expected and 2.4% previous. Back to back misses are going to make the Fed more dovish in the next few meetings. GDP Price Index rose 3.7% though, so inflation is still sticky – a mixed signal for the Fed.

Silver Bounces from Demand Zone

Silver (XAG/USD) reacted quickly to the weak data and bounced from the demand zone at $32.22 and up to $32.60 – a 1.2% intraday gain. $32.22 has been a demand floor multiple times this month and once again attracted dip buyers.

While this is a nice bounce, silver is still capped by the 50 EMA at $32.91 which is short term resistance. MACD is still bearish but flattening out so downside momentum is easing.

Key Levels to Watch:

• Support: $32.22 and $31.60

• Resistance: $32.81 and $33.15

Silver (XAG/USD) Trade Setup

Treat this as a reaction bounce not a reversal. If silver goes above $32.81 with volume, bulls may target $33.15. But if it fails $32.22 it could go to $31.60 or $31.33. This is a classic test and react setup.

Trade Plan:

• Buy above: $32.81

• Target: $33.15

• Stop-Loss: Below $32.00

Be patient. Let the price confirm before you enter. With macro data now uncertain, volatility will be high in the short term.