- Silver price dives below $30 as the US Dollar recovers amid caution ahead of US NFP data.
- Market speculation for the Fed reducing interest rates in September improves.
- Silver price weakens after a Double Top breakdown.
Silver price (XAG/USD) declines below the psychological support of $30.00 in Tuesday’s European session. The white metal weakens as the US Dollar (DXY) rebounds amid uncertainty ahead of United States (US) Nonfarm Payrolls (NFP) data for May, which will provide cues about whether the Federal Reserve (Fed) will start lowering key borrowing rates from their current levels in the September meeting.
The US Dollar Index (DXY) rebounds after falling to a multi-week low near 104.00. The appeal for dollar-denominated commodities, such as Silver, weakens as higher US Dollar makes them expensive.
Currently, the speculation for the Fed reducing interest rates in September has strengthened as recent US economic data has indicated signs of slowdown in the pace of US economic growth.
The US ISM manufacturing PMI showed that factory activity contracted for the second straight month, demand outlook is bleak and input prices expanded at a slower pace. Recently, the US Q1 Gross Domestic Product (GDP) was also revised lower to 1.3% from the preliminary estimates of 1.6%.
In today’s session, investors on the JOLTS Job Openings data for April, which will be published at 14:00 GMT. US employers are estimated to have posted 8.34 million jobs, lower than the prior reading of 8.49 million.
Silver technical analysis
Silver price weakens after a breakdown of the Double Top chart pattern formed on a four-hour timeframe. The chart formation was at multi-year high of $32.50 and it got triggered after breaking below May 24 low near $30.00. A breakdown of the above-mentioned chart pattern indicates a bearish reversal.
The asset has shifted below the 50-period Exponential Moving Average (EMA) near $30.80, which indicates that the short-term trend has turned bearish.
The 14-period Relative Strength Index (RSI) has shifted into the bearish range of 20.00-40.00, which suggests that momentum has leaned towards the downside.
Silver four-hour chart
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
AUD/USD depreciates due to market caution ahead of US NFP
The Australian Dollar remains subdued against the US Dollar for the second consecutive day on Friday. The AUD/USD pair faces modest headwinds as the USD steadies ahead of the upcoming Nonfarm Payrolls report in the North American session.
USD/JPY: Japanese Yen stands firm near a multi-month high against a broadly weaker USD
The Japanese Yen continues to be underpinned by increasing bets for more BoJ rate hikes. Trade tariff jitters and the risk-off mood further seem to underpin demand for the safe-haven JPY. Expectations for further policy easing by the Fed weigh on the USD and the USD/JPY pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.