- Silver hit multi-week highs near $22.50 on Friday ahead of the release of US jobs data at 1230GMT.
- If the data confirms a slowing of job gains/easing wage pressures, XAG/USD could rally towards $23.00.
Even though the US dollar is ever-so-slightly firmer in the run-up to the release of the official US labour market report at 1230GMT, the risk-off mood to broader markets has helped spot silver (XAG/USD) prices hit fresh multi-week highs near the $22.50 per troy ounce mark on Friday. Analysts expect the upcoming US jobs data to reveal a slowdown in the pace of job gains in the US and, perhaps more importantly, an easing of wage growth.
If the data confirms expectations, then this will (at the margin) ease the pressure faced by the Fed to continue tightening its monetary policy settings aggressively beyond September (two 50 bps hikes in June and July are seen as a certainty, given recent Fed communications). Precious metals like it when the Fed is less hawkish/outright more dovish, as this tends to weigh on US bond yields and the US dollar, lowering the opportunity cost of holding non-yielding assets and making USD-denominated commodities cheaper for international buyers.
A convincing break above late-May highs in the mid-$22.00s would open the door to an extension of gains towards $23.00 and the 50/200-Day Moving Averages, both of which reside in the mid-$23.00s. Note that US ISM Services PMI data for May will be released at 1400GMT, which will also be in focus as a timely update on the health of the dominant US service sector. Just as with the jobs data, signs of a slowdown would be greeted positively by silver investors who want to see a less aggressive Fed.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steadies near 1.0550, looks to post modest weekly gains
EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory.
GBP/USD struggles to hold above 1.2300
GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data.
Gold stays below $1,830 as US yields edge higher
Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.
Why Cardano could surprise over the weekend
ADA set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!