- Silver advances more than 2%, set to finish the week almost flat.
- US jobs data was mixed, but the unemployment rate rose, signaling the cooling labor market.
- Traders rushed into precious metals, uncertain about next week’s US inflation data, and punished the US Dollar.
Silver price rallies on the back of a mixed US jobs report that witnessed more Americans than estimated added to the workforce. Even though that would result in a strong US Dollar (USD), the Unemployment rate edged up, taking pressure off the US Federal Reserve (Fed). At the time of writing, the XAG/USD is trading at $20.49 a troy ounce.
Federal Reserve expected to hike gradually as the unemployment rate upticks
Wall Street extended its losses due to a risk-off impulse. The US Department of Labor (DoL) revealed that Nonfarm Payrolls in February rose by 311,000 jobs, more than the 225,000 expected. January’s job numbers were lowered from 517,000 to 504,000. The jobless rate was 3.6%, higher than the forecast of 3.4%, indicating a weaker labor market. Wages rose by 4.6%, and attention turned to the US inflation data next week.
During the week, the US Fed Chair Jerome Powell said that higher and potentially faster interest rate hikes could be needed at his appearance in the US Congress. He added that the US economy remains solid and that the Fed will be watching Nonfarm Payrolls figures and next week’s February Consumer Price Index (CPI) readings.
Market participant’s reaction sees the Federal Reserve hiking 25 bps at the upcoming March meeting. Based on the US jobs data, money market futures expect Powell and Co. will cut rates by the end of 2023.
Additionally, investors sent the greenback tumbling, as shown by the US Dollar Index (DXY) dropping 0.87% at 104.360. US Treasury bond yields extended their losses, with the 10-year yield plunging 16 bps, at 3.741%, a tailwind for precious metals prices. XAG/USD is up more than 2% after testing YTD lows at around $19.92.
XAG/USD Technical levels
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 remains stuck near 1.0800 after US employment data

EUR/USD struggles to find direction and moves up and down in a narrow channel at around 1.0800 in the American session on Wednesday. The data from the US showed that employment in the private sector rose less than expected in November and helped the pair limit its losses.
GBP/USD battles 1.2600 after US ADP data

GBP/USD is having a difficult time stabilizing above 1.2600 after closing the first two trading days of the week in negative territory. Despite the weaker-than-expected ADP Employment Change data, the US Dollar stays relatively resilient amid cautious market stance.
Gold rebounds to $2,030 as US yields stretch lower

Gold recovered toward $2,030 after testing $2,020 earlier in the day. The benchmark 10-year US Treasury bond yield declined to its lowest level in three months below 4.15% after US employment data and helped XAU/USD gain traction.
Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally

The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.
The Dollar is struggling to trend

For the last three trading sessions, the dollar index has been crossing up and down the 200-day moving average every day. All in all, the flirting with this level has been going on for more than three weeks, during which neither bulls nor bears were able to form a stable trend.