- Silver price stabilizes after better-than-expected US JOLTS job openings data for June.
- US employers posted 8.18 million new job openings.
- The Fed is expected to keep interest rates steady for the eighth consecutive year.
Silver (XAG/USD) price gives back its intraday gains and dips slightly below $28.00 in the American session on Tuesday. The white metal fell following the release of better-than-expected United States (US) JOLTS job openings data for June. New job openings came in at 8.18 million versus expectations of 8.03 million, but were lower than the previous release of 8.23 million, revised down from 8.14 million.
Upbeat US JOLTS job openings data has pushed the US Dollar (USD) higher. The US Dollar Index (DXY), which tracks the value of the Greenback against six major currencies, jumps near 104.80. US 10-year Treasury yields bounce near 4.18%.
Meanwhile, the main trigger for the price of silver will be the Federal Reserve’s (Fed) interest rate decision, which will be announced on Wednesday.
At the policy meeting, investors expect the Fed to decide to keep interest rates unchanged in the range of 5.25%-5.50%. The Fed is also expected to deliver dovish guidance on interest rates.
According to the CME FedWatch tool, 30-day federal funds futures price data show the central bank will cut interest rates by 25 basis points (bps) from their current levels at the September meeting. The data also show there will be two rate cuts instead of one, as policymakers projected in the Fed’s latest dot plot.
Technical analysis of Silver
Silver price is trading back and forth near $28.00. The short-term outlook for Silver price turns bearish following a downside break of the double top formation below the low of June 26 near $28.60 on a daily time frame. A downside break of the mentioned chart pattern results in a bearish crossover. The overall trend for Silver price is bearish as it settles below the 50-day exponential moving average (EMA), which is trading around $29.35.
The 14-day Relative Strength Index (RSI) is moving into the bearish range of 20.00-40.00, suggesting that the bearish momentum is intact.
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.
