US jobs data will drive price action
The upcoming US non-farm payrolls report at 1:30 PM GMT is expected to play a crucial role in silver’s immediate direction. Economists predict 160,000 jobs will be added in December, down from 227,000 in November, while the unemployment rate is expected to remain stable at 4.2%.
Stronger-than-expected employment data could dampen silver’s rally by lowering expectations of Federal Reserve rate cuts in 2025. Conversely, a weaker report could boost silver prices as traders price in a more accommodative stance from the Fed. However, high US Treasury yields, which are at their highest levels since April, continue to weigh on the metal as the opportunity cost of holding non-performing assets rises.
Regional demand trends reflect mixed sentiment
Demand for silver remains unevenly distributed across global markets. In India, higher prices have led to deeper discounts, reducing consumer appetite. In contrast, demand is strengthening in other Asian markets as buyers prepare for the Lunar New Year, traditionally a peak period for silver consumption.
Broader macroeconomic factors also influence silver’s appeal. Analysts point to growing fiscal concerns in the US and possible inflationary pressures from the new administration’s policies. Moreover, doubts about the long-term role of the US dollar as a reserve currency support gold and silver as a safe haven.
Market Outlook: Key Breakout Levels in Focus
Silver’s next move depends on breaking his current range. A sustained move above $30.63 could trigger a rally to $32.33, while failure to hold $29.94 risks further decline. With volatility likely to increase following the US jobs report, traders should remain vigilant as silver’s near-term direction becomes clearer.
More information in our Economic Calendar.