By NewsBlogger Silver prices declined after reaching a two-and-a-half-year high due to geopolitical concerns, while Gold prices dropped after hitting a record high. Market participants are awaiting the March US Nonfarm Payrolls report and potential monetary policy adjustments from the Federal Reserve.
At a glance
- Silver prices declined after hitting a two-and-a-half-year high due to geopolitical tensions.
- XAG/USD is currently trading at $26.84, showing an upward bias. Support levels are $25.91 and $25.08.
- Gold prices found support around $26.60 after pulling back from a two-year high of $27.34.
- Market participants are awaiting the US Nonfarm Payrolls report for March, with expectations of 200K new jobs being added.
- Reports of escalating tensions in the Middle East are impacting precious metals prices.
The details
Silver and Gold Prices React to Geopolitical Tensions and Economic Data
Silver prices recently saw a decline after hitting a two-and-a-half-year high of $27.33, driven by concerns over geopolitical risks following Israel’s attack on Iran’s embassy in Syria.
This led to a late risk-off sentiment, impacting precious metals, including Gold.
Silver Price Analysis
Currently, XAG/USD is trading at $26.84, down over 1%, but still showing an upward bias with consecutive higher and lower highs.
Sellers are aiming to push XAG/USD prices towards the support level at $25.91, which was previously a high on December 4. If this level is breached, the next support levels to watch for would be at $25.08, the low on April 2, and $24.33, the low on March 27. Conversely, if buyers manage to drive Silver’s spot price above $27.00, a re-test of the year-to-date high at $27.33 could be on the horizon.
Further upside potential to $28.00 might be possible if Silver surpasses the $27.00 mark.
Gold Market Analysis
On the other hand, Silver prices found support around $26.60 after pulling back from a two-year high of $27.34. Investors are treading cautiously ahead of the release of the United States Nonfarm Payrolls report for March.
Expect new payrolls to arrive at 200K, lower than the previous reading of 275K. The Unemployment Rate is anticipated to remain steady at 3.9%, while Average Hourly Earnings data will offer insights into inflation, with monthly wage growth forecasted at 0.3% and annual wage growth at 4.1%.
A robust labor market and increased wage growth could potentially delay any plans for rate cuts by the Federal Reserve.
Conversely, signs of a softening labor market could fuel hopes for a rate cut at the June meeting.
The US Dollar Index has stabilized after bouncing back from a two-week low of 103.90, with demand for Silver remaining strong amidst escalating tensions in the Middle East.
Silver’s price surged after breaking out of the Ascending Triangle pattern, establishing key support levels.
In the Gold market, XAU/USD dropped to $2,285 in the early Asian session after hitting a record high above $2,300. Geopolitical uncertainties in the Middle East and anticipated monetary policy adjustments from the Fed could influence the price of gold.
Market participants are eagerly awaiting the US Nonfarm Payrolls (NFP) report for March, with expectations of 200K new jobs being added.
The US Dollar Index has rebounded to 104.20 from lows of 103.90, while US Treasury bond yields have dipped, with the 10-year yield falling to 4.30%.
Initial Jobless Claims in the US rose to the highest level since January, with 221K new claims, while Continuing Claims decreased to 1.791M in the week ending March 23. Federal Reserve Chair Jerome Powell indicated that the policy rate may have peaked in the current cycle and that a rate cut could be considered if the economy evolves as projected.
Reports of Israel delaying combat troops’ leave and bolstering air defense command signal escalating tensions in the Middle East.
The upcoming US employment data for March, including NFP, Unemployment Rate, and Average Hourly Earnings, will be closely watched on Friday.
A strong employment report could bolster the US Dollar and limit the upside for USD-denominated gold.
The 20-day Exponential Moving Average, near $25.25 for Silver, indicates strong near-term demand, while the 14-period Relative Strength Index remains in the bullish range of 60.00-80.00.
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| fxstreet.com |
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| – Silver retreated after reaching a two-and-a-half-year high of $27.33 – Speculations of geopolitical risks due to Israel’s attack on Iran’s embassy in Syria triggered a late risk-off impulse – Precious metals, including Gold, are being weighed down by this risk-off impulse – XAG/USD is down more than 1% and currently trades at $26.84 – Silver remains upward biased with successive series of higher highs and higher lows – Sellers must bring XAG/USD’s prices toward the December 4 high turned support at $25.91 to regain control – If surpassed, the next stop would be the April 2 low at $25.08 before dropping to March 27’s low of $24.33 – If buyers push Silver’s spot price above $27.00, a re-test of the year-to-date high at $27.33 is possible – Potential rally to $28.00 could occur if Silver’s price surpasses $27.00 |
| fxstreet.com |
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| – Silver price discovered support near $26.60 after pulling back from a two-year high of $27.34 – Investors are cautious ahead of the United States Nonfarm Payrolls report for March – Expectations are for fresh payrolls to be 200K, lower than the previous reading of 275K – The Unemployment Rate is expected to remain steady at 3.9% – Average Hourly Earnings data will provide a fresh inflation outlook – Monthly wage growth is forecasted to have grown at a pace of 0.3% – Annually wage growth is estimated to have dipped to 4.1% – Strong labor demand and higher wage growth could delay rate cut plans for the Federal Reserve – Signs of easing labor market conditions could boost rate cut hopes for the June meeting – The US Dollar Index stabilized after recovering from a two-week low of 103.90 – Demand for Silver is bullish due to deepening Middle East tensions – Silver price rallied after breaking out of the Ascending Triangle pattern – The horizontal resistance of the chart pattern has turned into crucial support for Silver price bulls – The 20-day Exponential Moving Average near $25.25 keeps near-term demand strong – The 14-period Relative Strength Index oscillates in the bullish range of 60.00-80.00 |
| fxstreet.com |
|---|
| – Gold Price (XAU/USD) fell to $2,285 in early Asian session after reaching record high above $2,300 – Geopolitical risks in Middle East and expected monetary policy easing from Fed may impact gold price – Market players await US Nonfarm Payrolls (NFP) report for March, expecting 200K jobs added – US Dollar Index (DXY) recovers to 104.20 from two-week lows of 103.90 – US Treasury bond yields edge lower, with 10-year yield falling to 4.30% – US Initial Jobless Claims last week rose to highest level since January, with 221K new claims – Continuing Claims dropped to 1.791M in week ending March 23 – Federal Reserve (Fed) Chair Jerome Powell stated policy rate likely at peak in current cycle – Powell mentioned FOMC policymakers may cut policy rate if economy evolves as expected – Guardian reported Israel postponed leave for combat troops and increased air defense command due to rising geopolitical tensions in Middle East – US employment data for March, including NFP, Unemployment Rate, and Average Hourly Earnings, will be in spotlight on Friday – Stronger outcome of employment data may support Greenback and cap upside of USD-denominated gold |
