- Silver price maintains its position near the highest level since February 2012.
- The safe-haven demand For Silver increases as soft US economic data fuels the Fed rate cut odds.
- US NFP could have added 130,000 jobs in May, while the Unemployment Rate is expected to hold steady at 4.2%.
Silver price (XAG/USD) remains stronger for the second successive session, maintaining its position near the highest level since February 2012. The price of the grey metal is trading around $36.00 per troy ounce during the Asian hours on Friday.
The prices of precious metals, including Silver, surge as safe-haven demand increases amid soft economic data from the United States (US), fueling the Federal Reserve’s (Fed) rate cut expectations. Thursday’s Weekly Initial Jobless Claims rose to 247,000, above the expected 235,000.
On Wednesday, US ADP private sector employment rose 37,000 in May, far below the market expectation of 115,000. ISM Services Purchasing Managers Index (PMI) declined to 49.9 in May, from 51.6 in April. This reading surprisingly came in weaker than the expected 52.0.
Moreover, traders adopt caution ahead of the upcoming US Nonfarm Payrolls, which is expected to have added 130,000 jobs in May, below the 177,000 increase in April. Moreover, the Unemployment Rate is also expected to hold steady at 4.2%.
However, the upside of the safe-haven Silver could be restrained as market sentiment improved following a productive call between US President Donald Trump and Chinese President Xi Jinping. Trump expressed that the call was productive and prepared to continue tariff negotiations.
Traders would likely observe Monday’s slew of data from China, including consumer, producer prices, and trade data. Given China’s status as one of the world’s largest manufacturing hubs, the country’s industrial demand for Silver is significant.
