Silver Price Analysis: XAG/USD hits fresh multi-week highs near $22.50 pre-US NFP


  • 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.

XAG/Usd

Overview
Today last price 22.44
Today Daily Change 0.13
Today Daily Change % 0.58
Today daily open 22.31
 
Trends
Daily SMA20 21.75
Daily SMA50 23.33
Daily SMA100 23.73
Daily SMA200 23.51
 
Levels
Previous Daily High 22.33
Previous Daily Low 21.76
Previous Weekly High 22.44
Previous Weekly Low 21.67
Previous Monthly High 23.28
Previous Monthly Low 20.46
Daily Fibonacci 38.2% 22.12
Daily Fibonacci 61.8% 21.98
Daily Pivot Point S1 21.94
Daily Pivot Point S2 21.57
Daily Pivot Point S3 21.37
Daily Pivot Point R1 22.51
Daily Pivot Point R2 22.7
Daily Pivot Point R3 23.07

 

 

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