Silver prices retreat to $51.40 as a strengthening US Dollar and anticipation of October's NFP report weigh on the precious metal's short-term outlook.
Silver has slid from its weekly high of $53.45 to near $51.40 as the US Dollar Index gains 0.36% to 101.92, and investors are cautious ahead of the October NFP report at 13:30 GMT. A higher US Dollar makes silver less attractive, and the weekly chart shows a bearish bias with price below the 9-week EMA at $56.85 and the RSI at 36.47. The downside risk is limited if NFP comes in near the 65K estimate without altering Fed rate expectations.
Silver has dropped from $53.45 to near $51.40 because the US Dollar is strengthening ahead of the October US jobs report due at 13:30 GMT, and a stronger dollar makes silver a less favourable bet for investors.
Resistance sits at the 9-week EMA around $56.85 and the 61.8% retracement at $59.35, while the first meaningful support is the 78.6% retracement at $42.41, ahead of the structural low near $20.84.
The Dollar Index is up 0.36% near 101.92 as investors position ahead of October NFP, expected to show 65K hires versus 29K in September with unemployment steady at 4.2%. Fed officials' remarks point to further tightening, with Lorie Logan calling for at least two more quarter-point hikes, which supports the dollar. The article notes the data is expected to have a limited impact on Fed expectations, which could cap the move.
The dollar is gaining as investors turn cautious ahead of the October Nonfarm Payrolls report at 13:30 GMT, which is expected to show 65K new hires, up from 29K in September, while Fed officials have signalled more rate hikes are needed.
Silver (XAG/USD) is trading lower at $51.40 as the US Dollar Index climbs 0.36% to 101.92. Investors are exercising caution ahead of the October Nonfarm Payrolls report, which is expected to show 65,000 new jobs. While the metal remains under pressure, technical indicators suggest the downside momentum is beginning to ease as the RSI hovers near oversold territory.
Silver has dropped from $53.45 to near $51.40 because the US Dollar is strengthening ahead of the October US jobs report due at 13:30 GMT, and a stronger dollar makes silver a less favourable bet for investors.
Resistance sits at the 9-week EMA around $56.85 and the 61.8% retracement at $59.35, while the first meaningful support is the 78.6% retracement at $42.41, ahead of the structural low near $20.84.