Silver (XAG) Forecast: Strong NFP Could Weigh Prices—Or Will the Market Ignore It?

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Technically, the short -term trend is higher, a trade through this week’s high at $ 32.55 will indicate a resumption of the upward trend. The daily graph indicates that there is enough room with $ 34.87, the next large target. On the other hand, a trade up to $ 31.81 will be a first sign of weakness with Th Pivot for $ 31.12 the next large target price.

Traders look at banengies for instructions from Fed Policy

The NFP report is expected to be job growth of 169,000 tones, a delay of the 256,000 of December, but consistent with recent trends. The unemployment rate is expected to keep 4.1%, while wage growth is expected to alleviate to 0.3% monthly and 3.7% per year – the lowest in months.

A weaker than expected report could strengthen expectations for the federal reserve rate reductions, which would probably support silver prices. However, if the labor market remains resilient, the Fed can decrease, keeping the pressure on silver. Signs of economic weakness, such as increasing unemployment or downward revisions of previous data, can speed up betting on monetary stimulus, stimulating the demand for metal.

Rates ensure the demand for safe haven

Trade tensions add a new layer of uncertainty to the market. The tariff policy of the new US government, including new tasks on China, while the temporary exemptions for Mexico and Canada are being expanded, have increased global economic problems. This has increased Silver’s profession as a cover against economic instability.

President Austan Goolsbee of Chicago has acknowledged that although the economy remains strong, the uncertainties of trade make the FED policy path less predictable. If the labor market conditions deteriorate in addition to trade tensions, the case for speed reductions would reinforce, which makes silver benefit.

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The industrial question remains a key factor

The industrial applications of Silver continue to offer fundamental price support. The metal is widely used in electronics, solar panels and medical devices, whereby the sustainable energy sector stimulates persistent demand. The production of solar panel alone accounts for around 10% of global silver consumption.

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