XAG/USD climbs toward $31.30 ahead of U.S. Non-Farm Payrolls data.
FUNDAMENTAL OVERVIEW:
- Silver price rises to approximately $31.30, showing strong momentum ahead of the December U.S. NFP data.
- The FOMC minutes indicated concerns over a slowdown in the U.S. disinflation trend.
- Volatility driven by U.S. President-elect Donald Trump continues to support a positive outlook for precious metals.
Silver prices (XAG/USD) rise to around $31.30 during Friday’s European session, gaining ahead of the upcoming US Nonfarm Payroll (NFP) data for December, set to be released at 13:30 GMT. This labor market report will impact expectations surrounding the Federal Reserve’s (Fed) potential approach to further policy easing.
The NFP report is anticipated to reveal that the US economy added 160K jobs in December, a decrease from the 227K jobs added in November. The Unemployment Rate is expected to remain unchanged at 4.2%.
Investors will closely monitor the December Average Hourly Earnings data, as it serves as a key indicator of wage growth and consumer spending, providing insights into inflation trends. Month-on-month, Average Hourly Earnings are expected to rise at a slower pace of 0.3%, down from 0.4% in the previous release, while annual growth is anticipated to remain steady at 4%.
The minutes from the Federal Open Market Committee (FOMC) meeting in December revealed concerns among officials about the slowing pace of inflation progress towards the Fed’s 2% target.
Overall, Silver has shown strong performance over the past week, as market sentiment remains cautious amid uncertainty surrounding a potential global trade war. Investors are wary due to protectionist policies from President-elect Donald Trump, which are expected to influence the US business outlook. Historically, Silver tends to perform better during periods of heightened uncertainty.
XAG/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Silver is trading within a down channel.
Silver is moving above 10&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 30.45
Immediate support level: 29.76
HOW TO TRADE SILVER
“Silver experienced a price surge on a larger timeframe, but encountered resistance at a higher level, leading to a price reversal and a downward trend. However, the decline has recently paused, finding support at a certain level, and the price is now moving upwards. Currently, it’s trading at a crucial resistance level. A successful break and sustained trading above this level could signal further upward momentum for silver.”
TRADE SUGGESTION- STOP BUY – 30.51, TAKE PROFIT AT- 31.92, SL AT- 29.68.