Silver Price Forecast: XAG/USD jumps to near $25 on soft labor demand, US Dollar cracks further

Silver price climbs to near $25.00 as US hiring momentum slows due to higher interest rates by the Fed.
US ADP reported fresh private employment additions in August were 177K, significantly lower than July’s reading of 324K.
Silver price is approaching the horizontal resistance plotted from the July 20 high of around $25.27.

Sagar Dua FXStreet

Silver price (XAG/USD) resumes its upside journey and looks set to recapture the psychological resistance of $25.00 in the early New York session. The white metal strengthens as United States Automatic Data Processing (ADP) reported fresh private employment additions in August were 177K, significantly lower than July’s reading of 324K. Investors projected 195K new private payrolls.

The US Dollar Index (DXY) extends its downside to near 103.00 as soft labor demand could allow the Federal Reserve (Fed) to keep interest rates steady for the entire year. Fed Chair Jerome Powell at the Jackson Hole Symposium that further policy action will remain data-dependent. He further added that inflation is getting responsive to the labor market.

US firms have slowed down their hiring momentum due to the deteriorating demand environment. Also, firms are underutilizing their entire operating capacity, which reduces demand for fresh payrolls. On Tuesday, JOLTS Job Openings data also remained weaker than expectations. Employers invited applications for 8.827M vacancies against 9.165M job openings in June.

Meanwhile, S&P is expected to open on a flat note, following cues from overnight futures. The 10-year US Treasury yields dropped further to near 4.10% as investors hope that interest rates by the Fed are peaked for now.

Silver technical analysis

Silver price is approaching the horizontal resistance plotted from July 20 high around $25.27 on a two-hour scale. Upward-sloping 50-period Exponential Moving Average (EMA) indicates that the upside momentum is extremely bullish.

The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, which indicates that the upside momentum is active.

Silver two-hour chart

XAG/USD

Overview
Today last price	24.86
Today Daily Change	0.14
Today Daily Change %	0.57
Today daily open	24.72

Trends
Daily SMA20	23.31
Daily SMA50	23.56
Daily SMA100	23.97
Daily SMA200	23.39

Levels
Previous Daily High	24.8
Previous Daily Low	24.18
Previous Weekly High	24.38
Previous Weekly Low	22.67
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	24.56
Daily Fibonacci 61.8%	24.41
Daily Pivot Point S1	24.33
Daily Pivot Point S2	23.94
Daily Pivot Point S3	23.71
Daily Pivot Point R1	24.95
Daily Pivot Point R2	25.18
Daily Pivot Point R3	25.57

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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