- Silver price rises to near $25.00 as US contracting momentum slows due to higher interest rates from the Fed.
- US ADP reported new private employment hires for August at 177,000, significantly lower than the July reading of 324,000.
- Silver is approaching the horizontal resistance drawn from the July 20 high around $25.27.
The price of the Silver (XAG/USD) resumes its bullish path and looks set to recapture the psychological resistance at 25.00 in the early hours of the New York session. The white metal strengthens as the United States’ Automatic Data Processing (ADP) reported new private job additions for August at 177,000, significantly down from the July reading of 324,000. Investors expected 195,000 new private payrolls.
The Dollar Index (DXY) extends its decline to near 103.00 as weak demand for labor could allow the Federal Reserve (Fed) to keep interest rates stable throughout the year. Fed Chairman Jerome Powell told the Jackson Hole symposium that new policy actions will continue to be data driven. He further added that inflation is responding to the labor market.
US companies have slowed their hiring drive due to deteriorating demand. In addition, companies are underutilizing all their operational capacity, which reduces the demand for new payrolls. On Tuesday, the JOLTS job openings data also held in below expectations. Employers applied for 8.827 million open positions, compared to 9.165 million job offers in June.
Meanwhile, the S&P 500 Index is expected to open flatter, following signals from futures overnight. US 10-year Treasury yields fell further to around 4.10% as investors expect Fed interest rates to have peaked for now.
Silver Technical Analysis
Silver is approaching horizontal resistance drawn from the July 20 high around $25.27 on a two-hour scale. The upward slope of the 50-period EMA indicates that the upside momentum is extremely bullish.
The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, indicating that bullish momentum is active.
2 hour chart
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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.
