Silver Price Forecast: XAG/USD rises toward $30.00 after higher US Jobless Claims

Source Fxstreet
May 17, 2024 06:33
  • Silver price appreciated as higher Initial Jobless Claims contributed to the expectations of the Fed reducing rates in September.
  • Fed officials suggested prolonging of higher rates as pricing pressure persists in the US economy.
  • The US Dollar gains ground as the Fed adopts a cautious stance regarding the potential rate cuts in 2024.

Silver price retraces its recent losses registered on Thursday, trading around $29.70 per troy ounce during the Asian hours on Friday. The price of the grey metal as investors turn cautious following the higher-than-expected Initial Jobless Claims released by the US Department of Labor on Thursday. This has contributed to the dovish expectations of the Federal Reserve’s (Fed) delivering a rate cut in September.

The number of Americans filing new claims for jobless benefits rose to 222,000 for the week ending May 10, surpassing the market consensus of 220,000 but below the previous week's figure of 232,000.

On Thursday, Fed Bank of Atlanta President Raphael Bostic emphasized the need for patience with interest rates, noting that substantial pricing pressure persists in the US economy. Additionally, Cleveland Fed President Loretta Mester indicated that it might take longer than anticipated to confidently ascertain the inflation trajectory, suggesting that the Fed should maintain its restrictive stance for an extended period.

Reuters reports on Thursday, Atlanta Fed President Raphael Bostic said at an event in Jacksonville that the need for patience with interest rates, noting that substantial pricing pressure persists in the US economy. Additionally, Cleveland Fed President Loretta Mester indicated that it might take longer than anticipated to confidently ascertain the inflation trajectory, suggesting that the Fed should maintain its restrictive stance for an extended period.

In the absence of top-tier economic data from the US docket, market participants will likely observe Fedspeak for insights into the future direction of the Fed's monetary policy. Later on Friday, Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly are scheduled to speak, potentially providing valuable hints.

XAG/USD

Overview
Today last price 29.7
Today Daily Change 0.12
Today Daily Change % 0.41
Today daily open 29.58
 
Trends
Daily SMA20 27.64
Daily SMA50 26.71
Daily SMA100 24.82
Daily SMA200 24.04
 
Levels
Previous Daily High 29.85
Previous Daily Low 29.33
Previous Weekly High 28.77
Previous Weekly Low 26.44
Previous Monthly High 29.8
Previous Monthly Low 24.75
Daily Fibonacci 38.2% 29.53
Daily Fibonacci 61.8% 29.65
Daily Pivot Point S1 29.32
Daily Pivot Point S2 29.07
Daily Pivot Point S3 28.81
Daily Pivot Point R1 29.84
Daily Pivot Point R2 30.1
Daily Pivot Point R3 30.35

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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