The American economy added 143,000 jobs in January – Lightly under expectations – while the unemployment rate unexpectedly dropped to 4.0%, which signaled the resilience of the labor market.
Federal Reserve officials, including Neel Kashkari and Austan Goolsbee, have expressed concern about policy uncertainty, making it difficult to predict inflation trends. Traders see FED chairman Jerome Powell’s coming testimony of the congress and the most important American inflation data closely to gauge the following movements of the Central Bank.
Silver is expanding profits, but becomes resistance to USD strength
Silver (XAG/USD) followed Gold’s lead, rises to an intra-day high point of $ 32.08 before setting up at $ 32.04. The Bullish Momentum in Silver reflects the price action of Gold, powered by renewed fears and worries about the trade war about the inflationary pressure resulting from Trump’s rate policy.
Although the demand for safe haven has increased silver prices, the metal headwind of a reinforcing US dollar is confronted. A sturdy greenback usually limits the profit for raw materials that are priced in USD, making them more expensive for foreign investors.
Traders also follow the industrial demand for silver, especially in the electronics and solar energy sectors, which can further influence the price movements.
Short -term prediction
Gold prices (XAU/USD) remain Bullish above $ 2,859.59, with resistance to $ 2,886.95. An outbreak could push prices higher, while a drop under support can cause sale. Silver (XAG/USD) consolidates above $ 31.89, looking $ 32.53.