- Silver rates (XAG/USD) took another hit and slid to $23.75 in Thursday’s session and are now trending lower for the third day in a row.
- The Initial Jobless Claims data for the first week of December in the United States came in better than expected, giving a boost to the market.
- Key labor reports expected on Friday in the United States pushed bond yields higher in Thursday’s session.
In today’s session, the Silver rate (XAG/USD) declined, falling to $23.75. The drop was triggered by an uptick in US bond yields following a positive Initial Jobless Claims report that surpassed expectations. The US Dollar’s steady performance further contributed to the decline.
Additionally, the U.S. Department of Labor reported that the Initial Jobless Claims for the week ending December 2 stood at 220K, lower than the anticipated 222K. Despite the improvement, the claims accelerated from the previous 218K.
After this positive news, US bond yields rose, signaling strong support for a more aggressive stance from the Fed due to favorable labor market data. The 2-year rate is now at 4.60%, while the 5-year and 10-year rates are at 4.15%. Rising bond yields add pressure on non-yielding metals as they present an alternative investment to investors.
Looking ahead, the next round of labor reports from the U.S. Bureau of Labor Statistics on Friday, including Average Hourly Earnings, Unemployment Rate, and Nonfarm Payrolls, will influence the Federal Reserve’s decisions. As these key reports are eagerly awaited by the market, their outcomes will potentially determine the short-term movements of the metal.
For now, the focus is on the possible acceleration of Nonfarm Payrolls in November, with a slowdown in wages and an unchanged Unemployment rate of 3.9%.
XAG/USD levels to watch
The technical indicators suggest a mixed picture. While the Relative Strength Index (RSI) depicts an uptrend in selling momentum, it remains in bullish territory, indicating underlying buying strength. The Moving Average Convergence Divergence (MACD) histogram shows strengthening bearish momentum, which contributes to the overall mixed view.
The Simple Moving Averages (SMAs) reveal that the price is below the 20-day SMA, signaling a bearish bias in the short term. However, the position of the 100 and 200-day SMAs indicates an advantage for the bulls in the longer timeframe.
Support Levels: $23.50, $23.30, $23.00
Resistance Levels: $24.00, $24.30, $24.50.
XAG/USD daily chart
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