Silver Price Soars to Two-Day High Amid Downbeat US Jobs Data
The price of Silver (XAG/USD) has continued its upward trend for the second consecutive day, trading around $64.30 after breaking above July's peak at $63.30. This bullish momentum is attributed to the downbeat US Nonfarm Payrolls data released on Friday, which cooled expectations of Federal Reserve rate hikes further.
The unexpected decline in jobs by 23K last month, against market expectations of an 80K increase, has reduced the odds for a September rate hike to 44% from 67%, according to the CME Group's FedWatch Tool. This shift in sentiment has led to a depreciation of the US Dollar Index (DXY) below the key 100.00 level.
Technical analysis indicates that XAG/USD has confirmed a bullish Head & Shoulders pattern, with the measured target at $67.17, which is also the June 22 high. Momentum indicators in the daily chart are supporting the bullish view, as the Relative Strength Index (14) trends higher within the low-60s and the Moving Average Convergence Divergence (MACD) line advances further into positive territory.