- The price of Silver finds a cushion near $26.60 amid the correction prior to the US NFP report.
- US NFP report will influence market expectations for Fed rate cuts in June.
- Rising tensions in the Middle East keep short-term demand for Silver intact.
Silver price (XAG/USD) finds support near $26.60 after a pullback from the more than two-year high of $27.34. The white metal is taking a pause after a strong rally, as investors remain cautious ahead of the US March Non-Farm Payrolls (NFP) report, due at 12:30 GMT.
New payrolls are expected to be 200,000, down from the previous reading of 275,000. The unemployment rate is expected to remain at 3.9%.
Investors will also focus on the average hourly earnings data, which will provide fresh insights into inflation. Monthly wage growth is expected to have increased at a rate of 0.3%, up from 0.1% in February. In the same period, annual wage growth is estimated to have fallen to 4.1% compared to 4.3%.
Strong labor demand and higher wage growth would allow the Federal Reserve (Fed) to delay rate cut plans, while signs of easing labor market conditions will boost rate cut hopes for the meeting of June. The US Dollar Index (DXY) stabilizes after recovering from the two-week low of 103.90 ahead of the US NFP report.
Silver demand is bullish in the long term due to intensifying tensions in the Middle East. Airstrikes by Israeli forces on the Iranian embassy in Damascus, located near the Syrian capital, have raised fears of Iran's involvement in the war between Israel and Palestine.
Silver technical analysis
The price of Silver experienced a strong rebound after the breakout of the ascending triangle formed on the daily chart. The aforementioned chart pattern shows a sharp contraction in volatility, but a decisive breakout leads to high volume and broader ticks to the upside. The horizontal resistance of the aforementioned chart pattern, located from the May 5 high at $26.13, has become a crucial support for Silver price bulls.
The advance of the 20-day EMA near $25.25 keeps short-term demand intact.
The 14-period Relative Strength Index (RSI) is oscillating in the bullish range of 60.00-80.00, indicating strong upward-biased momentum.
Silver Daily Chart
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.
