- Summary:
- Silver price has continued its upward momentum, with its weekly gains adding up to about 6%, while weak US jobs data pressures the dollar.
Silver price rose on Thursday to continue its recent uptrend, signaling a reversal in the downtrend experienced from mid-to-late April. The grey metal traded at $28.08 per troy ounce at the time of writing, having risen by 2.75%. It was a reflection of the precious metal market mood on Thursday, with gold also snapping a two-day losing streak to rise by 0.90% at press time. Platinum was also up by a similar margin, underlining a positive feeling toward safe haven assets. Silver price is up by about 6% this week.
In general, the inclination toward precious metal is strengthened by rising geopolitical tension in the Middle East. Israel and Hamas are seemingly some way off from putting an end to their seven-month old war, despite Hamas having agreed to Egypt-brokered ceasefire deal. Israel has rejected the deal, and insists that it will proceed with a ground offensive in Rafah.
The US dollar is under pressure after the US economy printed out yet another set of weak data. The Initial Jobs Claims figures rose to 231,000 from 209,000, and exceeding the forecast figure of 212,000. In addition, silver price has support from falling US treasury bonds. Yields on benchmark 10-year bonds have stagnated below 4.500% this week, raising the allure of precious metals. Looking ahead, the XAUUSD trading pair is likely to remain on the uptrend, especially in view of Friday’s lack of macroeconomic data. However, Federal Reserve member, Michelle W. Bowman, is set to speak on Friday could inject fresh impetus into the pair.
Technical analysis
The momentum on silver price signals control by the buyers, with the pivot at 27.94. The continuation of this momentum is likely to break the resistance at 28.22, setting the pace to test 28.45 in extension. On the other hand, moving below 27.94 will likely favour the sellers to take control, with the first support likely to be at 27.67. A continuation of that momentum will likely break the support and favour the sellers to move the price to 27.43.
