- 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.
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
-638289988524300222.png)
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 hovers above 1.0850 amid dour mood
EUR/USD is oscillating in a tight range above 1.0850 in early Europe on Tuesday. The pair stays cautious due to risk-off sentiment and a modest US Dollar uptick, as investors weigh the ECB and Fed rate cut expectations. The focus now remains on speeches from Fed officials.
GBP/USD posts small gains above 1.2700, awaits fresh catalysts
GBP/USD holds small gains above 1.2700 in European trading on Tuesday. Investors await fresh catalysts, with several Federal Reserve speakers and BoE Governor Andrew set to speak. Tuesday's Fedspeak weighed on rate cut expectations and fuelled a fresh US Dollar advance.
Gold price loses its recovery momentum amid renewed US Dollar demand
Gold price (XAU/USD) loses traction on Tuesday after reaching a record high earlier. The lack of fresh catalysts in a quiet session in terms of top-tier economic data might limit the precious metal’s upside.
New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud
After a lawsuit filed by the New York Attorney General against crypto lender Genesis in late 2023, the company reached a settlement of $2 billion with the AG on Monday.
Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium
Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.