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Silver Price Forecast: XAG/USD retreats from $26.80 amid uncertainty ahead of US NFP

Silver price (XAG/USD) falls back sharply to $26.30 while attempting to recapture the crucial resistance of $27.00 during the European session on Thursday. The white metal faces pressure as the US Dollar and bond yields attempt to recover amid uncertainty ahead of the United States Nonfarm Payrolls (NFP) and the ISM Services PMI data for April, which will be published on Friday. The US NFP data would significantly influence market expectations for Federal Reserve (Fed) rate cuts from the June meeting. Economists have anticipated that US employers recruited 243K jobs, lower than 303K additions registered in March. The Unemployment Rate is forecasted to have remained steady at 3.8%. Investors will keenly focus on the US Average Hourly Earnings data. The annual Average Hourly Earnings are expected to have grown at a slower pace of 4.0% from 4.1% in March, with steady 0.3% growth on a month-on-month basis. Average Hourly Earnings are a leading indicator of wage growth, which indicates the current status of households’ spending and eventually influences price pressures. The US Dollar Index (DXY) rebounds to 105.75 and 10-year US Treasury yields edge up to 4.61. The US Dollar and bond yields tumbled on Wednesday after less hawkish interest rate guidance from the Federal Reserve (Fed) than feared. The Fed remains optimistic over eventual rate cuts this year despite risks of a slowdown in the disinflation process. Silver technical analysis Silver price declines to near the horizontal support plotted from 14 April 2023 high around $26.09 on a daily timeframe. The above-mentioned support was earlier a major resistance for the Silver price bulls. The uncertainty over Silver’s near-term outlook deepens as it has slipped below the 20-period Exponential Moving Average (EMA), which trades around $27.20. The 14-period Relative Strength Index (RSI) slips into the 40.00-60.00 range, suggesting that the bullish momentum has faded. However, the long-term outlook is still stable. Silver daily chart

OVERVIEW Today last price26.17 Today Daily Change-0.46 Today Daily Change %-1.73 Today daily open26.63 TRENDS Daily SMA2027.66 Daily SMA5025.62 Daily SMA10024.39 Daily SMA20023.81 LEVELS Previous Daily High26.97 Previous Daily Low26.26 Previous Weekly High28.69 Previous Weekly Low26.67 Previous Monthly High29.80 Previous Monthly Low24.75 Daily Fibonacci 38.2%26.70 Daily Fibonacci 61.8%26.53 Daily Pivot Point S126.27 Daily Pivot Point S225.91 Daily Pivot Point S325.56 Daily Pivot Point R126.98 Daily Pivot Point R227.33 Daily Pivot Point R327.69

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Publication date:

2024-05-02 13:34:38 (GMT)

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