Silver Prices Rise Following Lower-Than-Expected Private Job Increases In The US.

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Silver Prices Rise Following Lower-Than-Expected Private Job Increases In The US.
Credit: © Reuters.

Silver posted a gain of 1.04%, settling at 74,138, primarily driven by a weakening US dollar in the wake of lower-than-expected private job gains. The dollar's decline followed the report that US businesses added 140,000 workers in February, slightly below the forecast of 150,000. Fed Chair Powell's remarks in his semiannual Monetary Policy Report emphasized the uncertainty in the economic outlook and the need for caution in adjusting policy restraint. 

Powell hinted that the Fed funds rate might be at its peak for the current tightening cycle and that dialling back policy restraint could occur later in the year, contingent on greater confidence in inflation sustainably moving toward the 2% target. Additional US labour market data showed a decline in job quits to 3.385 million in January, touching the lowest level since January 2021. Job openings decreased to 8.863 million, the lowest in three months, further contributing to the cautious sentiment in the market. 

Technically, silver is experiencing fresh buying interest, with a 2.25% increase in open interest, settling at 22,437. Support is identified at 73,360, with a potential test of 72,580, while resistance is likely at 74,580, with a breakthrough potentially leading to a test of 75,020. The combination of a weakening dollar, cautious Fed statements, and mixed labour market data contributes to the positive momentum in the silver market. Traders will likely monitor economic indicators and Fed communications for further insights into the precious metal's direction.

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