Silver (XAG) Daily Forecast: Eyes on $26.82 Pivot as NFP Report Looms

The dollar’s decline to a three-week low, influenced by the Fed’s tempered policy outlook, has somewhat cushioned silver from steeper declines. As the market anticipates the upcoming US Nonfarm Payrolls (NFP) report, traders remain cautious, holding off on significant moves.

They are looking for insights from the NFP data, which could indicate the Federal Reserve’s future rate decisions, to guide their next positions in the silver market.

How Upcoming NFP Report Could Influence Silver and Gold Prices

Despite ongoing inflation concerns, Federal Reserve Chair Jerome Powell has indicated that there will be no further interest rate hikes, which has led to a decline in the US Dollar’s value. While the Fed has no immediate plans to reduce rates, it remains open to the possibility, suggesting a future easing of monetary policy.

This, coupled with a generally positive market sentiment, has reduced demand for safe-haven assets like silver. Consequently, silver prices have remained relatively stable, buoyed by a weaker dollar, indicating that significant price drops may not be imminent.

Traders are now poised to react to the upcoming release of the US Nonfarm Payrolls (NFP) report, which is closely monitored for insights into the labor market.

The report is expected to show the economy added 243,000 jobs in April, with the unemployment rate projected to stay at 3.8% and average hourly earnings possibly decreasing slightly to an annual rate of 4.0% from 4.1%.

This data is crucial as it could shape market expectations regarding the Federal Reserve’s future policy moves, significantly affecting both the US Dollar and precious metals like gold and silver.

Key Economic Indicators:

• • NFP Job Addition: Expected increase of 243,000 jobs in April.
  • Unemployment Rate: Anticipated to remain at 3.8%.
  • Average Hourly Earnings: Potential decrease to an annual growth rate of 4.0%.