S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- Silver price jumps to near $60.95 as oil prices fall sharply.
- Investors are uncertain regarding the freedom of navigation through the Hormuz Strait.
- US ADP Employment Change and NFP data for July are awaited.
Silver price (XAG/USD) trades 1.8% higher at around $60.95 during the Asian trading session on Wednesday. The white metal attracts significant bids as oil prices face a sharp sell-off amid hopes of a resolution in conflicts between the United States (US) and Iran regarding the Strait of Hormuz, a critical chokepoint to almost one-fifth of global energy supply and Tehran’s nuclear ambitions.
As of writing, the WTI Oil price trades 0.8% lower at around $73.80.
Global inflation expectations get anchored by lower oil prices, which diminish fears of interest rate hikes by central banks. Such a scenario bodes well for non-yielding assets, like Silver.
Hopes for US-Iran conflict resolution are backed by comments from US officials that a deal would be reached soon. On Tuesday, US Treasury Secretary Scott Bessent said in a CNBC interview that a deal with Iran to reopen the critical chokepoint could be reached “as soon as Tuesday or Wednesday”.
However, financial markets are uncertain regarding whether ongoing talks would restore freedom of navigation through the critical chokepoint. So far, Iran has just confirmed that it is in talks with Oman over the charge of the Hormuz Strait.
Meanwhile, investors await the US Nonfarm Payrolls (NFP) data for July to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook. In Wednesday’s session, investors will focus on the ADP Employment Change data for July, which will be published at 12:15 GMT.
Deutsche Bank looks for modest pickup in US July payrolls
Economists at Deutsche Bank expect a slightly firmer US labour market print on Friday, projecting that the July payrolls report will show employment growth of “+65k, modestly above June’s +57k reading,” with “private payrolls … also expected to rise by +65k after +49k previously.” Set alongside their projections for a 4.2% unemployment rate, with risks skewed toward 4.3% on higher participation, and average hourly earnings rising 0.3% month-on-month, the bank’s forecasts point to a still‑moderate pace of job creation consistent with nominal income growth running at around 4.4% year‑on‑year.
Silver technical analysis
XAG/USD trades higher at around $60.95, holding above the 20-period exponential moving average (EMA) at $59.05, which now underpins a constructive near-term bias. The EMA offers underlying trend support as price advances away from the recent lows, while the Relative Strength Index (RSI) at 53.23 sits in neutral-to-positive territory, hinting that bullish momentum is building but not yet overstretched.
On the downside, immediate support is located at the 20-day EMA at $59.05, where a pullback could find buyers to preserve the short-term uptrend. Below that, the July 17 low at $54.77 is the key support level. Looking up, the Silver price could extend the advance towards the July 6 high at $63.28 if it manages to stabilize above $61.00
