All eyes are now focused on American labor data that can provide insight into the power of the labor market. Weak numbers can feed the expectations of speed reductions, making silver more attractive. On the other hand, strong baneng data can push higher and limit the benefit of Silver.
Can the US dollar keep silver under control?
The US dollar remains determined because the uncertainty of the trade war continues to dominate sentiment. While the tariff break on Mexico and Canada offered temporary lighting, new tasks on Chinese import have added new pressure.
The Chinese Yuan weakened somewhat in offshore trade, while the Australian dollar – often connected to the economic health of China – also decreased. In the meantime, the euro was lower on the fear that Europe could be the next target of American trade measures.
Higher inflation expectations can further strengthen the dollar, which can close Silver’s profit in the short term.
Market front views: Can silver break through the resistance?
Silver’s prospects remain positive, supported by the concerns of trade wars, inflation risks and general market insecurity. Traders look at important US economic data that can stimulate the price action in the short term.
If the concerns of inflation persist and the global uncertainty becomes deeper, silver can see an increased demand for safe haven. However, a stronger dollar and fixed task data can limit the profit. For the time being, silver remains in a critical range, with $ 31.81 as an important turning level to view.
More information in our economic calendar.