- Silver price trades sideways around $21.00 ahead of the US NFP report.
- The weak US ADP Employment report has cast doubts about sustaining resilient labor market conditions.
- The US Dollar Index is making efforts to defend the extension in the losing spell.
Silver price (XAG/USD) delivers topsy-turvy moves in a narrow range of $21.00 as investors have sidelined ahead of the United States labor market data. The volatility in the white metal has squeezed as trading volume has dried.
S&P500 futures generated some losses in the London session, portraying a cautious market mood ahead of the US Nonfarm Payrolls (NFP) report. The US Dollar Index (DXY) is making efforts to defend the extension in the losing spell. The US Dollar has been facing selling pressure for the past three trading sessions as weak US ADP Employment report has cast doubts about sustaining resilient labor market conditions.
As per the RBC economics, the US payroll employment data will likely show the Unemployment Rate holding steady at 3.8%, and employment up by 177K, slightly below the 187K add in August. Labor market conditions remain tight with initial jobless claims trending at low levels. But signs of slowing demand including falling job openings mean we can continue to expect conditions to slow.
Silver technical analysis
Silver price remains back-and-forth in a narrow range of $20.70-21.40 for the past three trading sessions. A consolidation pattern demonstrates a volatility compression and is followed by an explosion, which results in wider ticks and heavy volume.
The 50-period Exponential Moving Average (EMA) at $20.50 continues to act as a major barricade for the Silver price bulls.
The Relative Strength Index (RSI) (14) trades in the 40.00-60.00 range, which indicates that investors await a potential trigger.
Silver hourly chart