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Silver Price Analysis: XAG/USD rises and threatens $25.00

  • XAG/USD rose more than 1% and jumped near $24.70.
  • The USD trades flat, allowing precious metals to advance.
  • JOLTs Job openings, ADP and NFP from the US from July reports are the week's highlights.

On Monday, the XAG/USD saw significant gains, mainly by a positive market mood and a relatively weak USD. That being said, markets may see volatility during the week as the US will release key labour market data that will affect the bets on the next Federal Reserve (Fed) decisions.

According to the consensus, July saw a decline in job creation, while hourly wages and the unemployment rate held steady. In that, the direction of the US labour market will be crucial for investors, as Chair Powell noted last week that the decision to set the next interest rate will only be based on new data. In addition, he added that to normalise inflation, the Fed expects “some” softening of the labour market.

The JOLTs Job Opening report will be released on Tuesday, and the ADP employment change report will be released on Wednesday. New jobless claims data will be released on Thursday, and the Non-Farm Payrolls (NFP) report on Friday, the primary week’s highlight. 

As for now, according to World Interest Rate Possibilities (WIRP) tool, the markets are currently pricing in a 25% chance of a 25 bps hike in the September meeting and a 40% chance of a 25 bps hike in November. However, those expectations may see significant changes this week, which could fuel volatility in bond markets and hence in the price dynamics of the precious metals.

XAG/USD Levels to watch

Based on the daily chart, the XAG/USD appears to be bullish in the short term, as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that the buyers have control as they stand in positive territory. Additionally, the pair is above the 
20,100,200-day SMAs, highlighting the continued dominance of bulls on a broader scale.

Resistance levels: $24.90,$25.00, $25.30. 
Support levels: $24.30, $24.15 (20-day SMA), $24.00.

XAG/USD Daily chart

XAG/USD

Overview
Today last price24.8
Today Daily Change0.45
Today Daily Change %1.85
Today daily open24.35
 
Trends
Daily SMA2024.09
Daily SMA5023.65
Daily SMA10023.93
Daily SMA20023.06
 
Levels
Previous Daily High24.41
Previous Daily Low24.09
Previous Weekly High25.15
Previous Weekly Low24.04
Previous Monthly High24.53
Previous Monthly Low22.11
Daily Fibonacci 38.2%24.29
Daily Fibonacci 61.8%24.21
Daily Pivot Point S124.16
Daily Pivot Point S223.97
Daily Pivot Point S323.84
Daily Pivot Point R124.48
Daily Pivot Point R224.6
Daily Pivot Point R324.79

Author

Patricio Martín

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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