- La Plata reverses early losses on Friday after the non -agricultural payroll report came below expectations.
- The July NFP report showed that the US economy added only 73,000 jobs, well below the 110,000 predicted.
- The US dollar weakens in general after weak economic data increased the expectations of a Fed rates cut in September.
La Plata (XAG/USD) reverses early losses on Friday and rises above the 3,50 $ brand, driven by a generalized mass sale in the US dollar (USD) after the latest non -agricultural payroll report (NFP) surprised the decline.
The Julio Non -Agricultural Payroll (NFP) report delivered a surprising significant decline. The US Labor Statistics Office reported that the US economy added only 73,000 jobs, well below the expected 110,000. Adding to the Dovish tone, June payrolls were drastically reviewed to 14,000 from the 147,000 previously reported. The unemployment rate rose to 4.2%, in line with the forecasts, while the salary growth remained stable, with the average earnings per hour by increasing an intermennsual 0.3% and 3.9% year -on -year. The unemployment rate rose to 4.2% in July, coinciding with expectations and increasing slightly from 4.1% in June.
In the manufacturing sector, the final manufacturing PMI of S&P global rose slightly to 49.8 in July, exceeding the expectations of 49.7 and improving from 49.5 previously. However, the ISM manufacturing PMI, which is observed more closely, did not comply with the forecasts, falling to 48.0 from 49.0, indicating a continuous contraction in the manufacturing activity.
Employment data in the US weakest than expected caused a strong drop in the yields of the US Treasury bonds and revived the speculation that the Federal Reserve (Fed) could begin to cut interest rates as soon as in September. This change in feeling weighed strongly over the dollar, increasing the demand for assets without yield such as silver. According to the CMM Fedwatch tool, markets are now valuing a 82% probability of a feat cut at the September meeting of the Fed, a strong increase from only 37% before the publication, since operators reevaluate the policy trajectory of the Central Bank in the light of labor market cooling.
From a technical point of view, the intradic rebound in La Plata offers some short -term relief for the bulls, but the broader configuration still requires caution. In the daily chart, the XAG/USD is maintained below the ascending channel that broke on Thursday, without a clear tracking. Until the metal recovers the broken channel or confirms a deeper break, the perspective remains neutral at bassist.
The metal bounced in the 50 -day exponential (EMA) mobile average in 36.56 $, which acts as an immediate support. A daily closure below this area could expose the following key objective on the single mobile average (SMA) of 100 days, located around 34.65 $.
The relative force index (RSI) in the daily chart has risen slightly and now marks 45, reflecting a modest improvement in the impulse. However, it is still below the 50th neutral brand, suggesting that the bassist feeling still prevails. Meanwhile, the average directional index (ADX) is in 21.23, indicating a weak trend and the short -term consolidation potential. If the recovery is maintained, the bulls can point to the resistance zone of 37.50 $ -38.00 $. Down, a daily closure below $ 36.00 could rekindle the sales pressure and expose a crucial demand zone in the range of 35.30 $ -35.70 $, which could provide some relief to the bullies.
SILVER – FREQUENT QUESTIONS
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
