Silver bears lining up at a 61.8% Fib confluence
|- Silver has been under pressure as the greenback battles for higher grounds.
- XAG/USD is pulling back to mark a 61.8% Fib retracement.
XAG/USD is trading at $24.6724 between a low of $24.3769 and a high of $25.0888 and trades down some 1.5% on the day so far.
Silver is pulling back from the lows of the day but remains in the hands of the bears.
Better-than-expected US jobs data has helped the dollar on Thursday at the same time that there is a lack of conviction in US trade talks.
The US Senate Majority Leader McConnell has said that the House Speaker Nancy Pelosi wants to spend ‘way more’ on aid.
The dollar DXY, meanwhile, bounced back from a seven-week low versus major rivals, making gold more expensive for those holding other currencies, after US President Donald Trump accused Democrats of being unwilling to reach a deal on a new coronavirus relief bill.
However, the improving numbers in the jobs data take some pressure of the stimulus package progress, but it doesn't take away the concerns over a contested election and prolonged political fallouts.
Meanwhile, the data showed initial claims for state unemployment benefits in the United States dropped 55,000 to a seasonally adjusted 787,000 last week, although the overall number was still relatively high.
A Reuters survey had forecast 860,000 claims in the latest week.
Focus now shifts to the final US presidential debate between Trump and Democratic rival Joe Biden on Thursday night ahead of the November 3rd election.
''Certainly, a Blue Wave is fueling expectations of a lower dollar, as more stimulus fuels a global reflationary wave, but it also adds fuel to the bear steepening in the Treasury curve,'' analysts at TD Securities argued,
''While we think the Fed will mitigate these risks shortly after the election by extending the duration of QE, the Fed is taking a reactive approach which suggests that rates may need to rise to prompt them to act. Given that expected supply net of Federal, Reserve buying is set to rise sharply, we think the Fed will do so at the December FOMC meeting.''
Silver levels and technical analysis
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