Silver Price Forecast: XAG/USD faces pressure near $32.70 with US NFP in focus
- Silver price struggles around $32.70 ahead of the US NFP data for February.
- The US employment data will influence market speculation for the Fed’s monetary policy outlook.
- The Silver price remains supported by global trade war tensions.
Silver price (XAG/USD) faces selling pressure near $32.70 in European trading hours on Friday. The white metal trades cautiously ahead of the United States (US) Nonfarm Payrolls (NFP) data for February, which will be published at 13:30 GMT.
The US NFP data will significantly influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook. Upbeat labor market data would boost market speculation that the Fed will keep interest rates steady in the current range of 4.25%-4.50% for longer. On the contrary, soft numbers would weaken them.
Technically, a restrictive interest rate stance from the Fed bodes poorly for precious metals, such as Silver.
The US NFP report is expected to show that the employers hired 160K workers, higher than 143K recorded in January. The Unemployment Rate is seen steady at 4%. Investors will also focus on the Average Hourly Earnings data, a key measure of wage growth, which is estimated to have grown steadily by 4.1% year-on-year.
Ahead of the US NFP data, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posts a fresh four-month low near 103.60. 10-year US Treasury yields drops to near 4.27%.
Meanwhile, global trade war tensions continue to offer support to the Silver price. On Thursday, US President Donald Trump confirmed tariff exemptions on products compliant with the United States-Mexico-Canada Agreement (USMCA) till April 2. Trump imposed 25% tariffs on imports from Canada and Mexico on Tuesday.
Silver technical analysis
Silver price strives to hold the key resistance of $32.40 plotted from the December 12 high. The asset trades above the 20-day Exponential Moving Average (EMA), which trades around $32.00, suggesting that the near-term trend is bullish.
The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, suggesting a sideways trend.
Looking down, the upward-sloping trendline from the August 8 low of $26.45 will act as key support for the Silver price around $30.00. While, the February 14 high of $33.40 will be the key barrier.
Silver daily chart
