US NFP Report Triggers Silver Consolidation Ahead of Fed Decision
Silver prices have been consolidating recently, with marginal losses on Friday as traders wait for the US Nonfarm Payrolls (NFP) report. The 100-day Simple Moving Average (SMA) near $67 is capping the immediate upside, while momentum indicators point to limited bullish strength. At the time of writing, XAG/USD trades around $66.80.
The US economy is expected to add 56K jobs in August after shedding 23K in July, and the Unemployment Rate is forecast to hold at 4.1%. The figures are likely to play a key role in shaping the Federal Reserve's (Fed) decision at its September 15-16 monetary policy meeting.
A stronger-than-expected NFP could keep XAG/USD below the 100-day SMA, while a disappointing result may clear the way for a bullish breakout. The Relative Strength Index (RSI) on the daily chart around 55 hints at modest bullish momentum, yet the Average Directional Index (ADX) near 17 suggests a weak underlying trend.