Silver Prices Soar 4% Amid Weaker US Employment Data

Silver prices surged more than 4% on Wednesday as weaker-than-expected US ADP employment data and easing energy-driven inflation prompted traders to scale back expectations for Federal Reserve rate hikes.

The XAG/USD pair traded around $62.30, its highest level in a month, with the daily momentum improving but the weekly outlook remaining bearish.

From a technical perspective, Silver has reclaimed its 21-day Simple Moving Average (SMA) at $58.31 and is challenging the 50-day SMA at $62.65. The Relative Strength Index (RSI) rose to 56, while the Moving Average Convergence Divergence (MACD) stayed above zero, indicating building bullish momentum.

However, on the weekly chart, Silver remains below its 50-week SMA at $65.94 and the 21-week SMA at $68.64, keeping the broader outlook bearish. The weekly RSI stands at 45, while the MACD remains below zero, suggesting that the latest advance has yet to develop into a broader bullish reversal.