Silver (XAG) Forecast: Will Upcoming Jobs Data Spark a Rally Above $29 Resistance?
Market Overview of Silver Futures
Silver prices have surged over 1.50%, currently trading at $28.66. Key support is holding at $28.22, while the important 50-day moving average stands at $29.13. This threshold could ignite further buying momentum.
Impact of Fed Rate Cuts on Silver
The rally in silver is fueled by expectations of aggressive rate cuts from the Fed. With a 57% chance of a 25-basis-point cut this month, traders are increasingly interested in silver as a safe haven.
Importance of U.S. Labor Data
- The ADP Employment Change report, expecting 144,000 jobs to be added, could significantly impact silver prices.
- A stronger ADP result may limit silver's upside, while a weaker report could bolster it further.
Short-Term Outlook for Silver
Upcoming labor data will be crucial for silver's direction. If the ADP report disappoints, it may trigger more aggressive Fed rate cuts, providing strong support for silver.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.