- The price of silver rises about $ 32.40 while bond yields operate cautiously before US NFP data for January.
- Investors expect the US economy to have added 170,000 workers last month.
- Some encouraging data of the US labor market would force operators to increase bets that support the Fed to keep stable interest rates for longer.
The price of silver (XAG/USD) rises about $ 32.40 at European negotiation hours on Friday. White metal wins while the US dollar (USD) and bond yield .
Investors will focus on employment data to evaluate the perspectives of the monetary policy of the Federal Reserve (FED). On Thursday, the president of the Dallas Fed Bank, Lorie Logan, said she would support to keep interest rates at her current levels until the “labor market does not falter.”
The US NFP report is expected to show that 170,000 new workers to the workforce were added in January, less than the 256,000 December. It is estimated that the unemployment rate has remained stable at 4.1%. The signs of a strong labor demand would increase the market expectations that the Fed will maintain interest rates in its current range of 4.25% -4.50% for longer. Such scenario would be unfavorable for the price of silver.
Investors will also focus on the average time gain data, which is a key measure of salary growth. Annually, the salary growth measure is expected to have a 3.8% decelerated from 3.9% in December.
Before the US NFP, the US dollar index (DXY), which tracks the value of the dollar against six main currencies, moderately trades around 107.70. Treasury yields to 10 years from USAs lower about 4.43%.
Technical Analysis of La Plata
The price of silver strives to break the immediate resistance of $ 32.50, which is drawn from the maximum of December 9. The white metal perspective remains bullish since the 20 -day exponential (EMA) mobile average is upward inclined about $ 30.90.
The 14-day relative force (RSI) index oscillates in the range of 60.00-80.00, suggesting that the impulse is upward.
Looking down, the ascending trend line from the minimum of August 8, 26.45 will be the key support for the price of silver around 29.50. While the maximum of October 31, 33,90 will be the key barrier.
Daily graphic 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.
