- XAG / USD is stable as the 10-year US Treasury bond yield sits firmly around 1.61%.
- The US dollar index looks set to close above 94.00 for the second week in a row.
Silver (XAG / USD) advances during the New York session, soaring 0.69%, trading at $ 22.76 at time of writing. Price action throughout the U.S. session swung sharply after the U.S. Bureau of Labor Statistics (BLS) released the U.S. Nonfarm Payrolls report, which found an increase of just 194,000 jobs, lower than 500,000 forecast by analysts.
The employment figure shows that there is still some slack in the labor market, although the silver lining is that the unemployment rate has fallen from 5.1% to 4.8%. Additionally, investor reaction appears to align with what Federal Reserve Chairman Jerome Powell said at the September meeting. He said he needed a reasonably good jobs report to start the bond reduction process.
Risk appetite portrays the market reaction. US stock indices, instead of climbing, fell, the yield on 10-year US Treasury bonds reached 1.61% and the US dollar held on to 94.11, losing 0.11% against a basket of six peers.
XAG / USD Price Prediction: Technical Outlook
1 hour graph
XAG / USD is trading above simple moving averages, suggesting silver has a bullish bias.
Price action once the nonfarm wage figure for September hit the threads, silver jumped aggressively to the new daily high of around $ 23.19, but as the report was dissected, the gut reaction faded, retreating to familiar levels around the 50-SMA at $ 22.63.
For silver buyers to resume the uptrend, they will need to break above $ 23.00. in this case, the first supply zone would be the October 8 high at $ 23.19. A breakout of the latter would expose the September 14 swing lows around $ 23.50, followed by the psychological $ 24.00.
On the other hand, for the XAG / USD sellers to regain control, they need to recover the 200-SMA at $ 22.36. Once that is achieved, a dip to the 2021 lows of around $ 21.40 is to be expected. Nonetheless, there would be some crucial demand areas along the way, like the psychological round number $ 22.00, followed by $ 21.79.
The Relative Strength Index (RSI) is at 50, aiming a little higher, suggesting a short-term bullish bias, which could open the door for another boost.