The price of silver, represented by XAGUSD, has risen close to $25.00. This increase in value is a result of the United States’ slower hiring momentum caused by the Federal Reserve’s implementation of higher interest rates.

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• Silver price climbs to near $25.00 as US hiring momentum slows due to higher interest rates by the Fed.

The pair currently trades last at 24.963.

The previous day high was 24.8 while the previous day low was 24.18. The daily 38.2% Fib levels comes at 24.56, expected to provide support. Similarly, the daily 61.8% fib level is at 24.41, expected to provide support.

Silver price (XAG/USD) resumes its upside journey and looks set to recapture the psychological resistance of $25.00 in the early New York session. The white metal strengthens as United States Automatic Data Processing (ADP) reported fresh private employment additions in August were 177K, significantly lower than July’s reading of 324K. Investors projected 195K new private payrolls.

The US Dollar Index (DXY) extends its downside to near 103.00 as soft labor demand could allow the Federal Reserve (Fed) to keep interest rates steady for the entire year. Fed Chair Jerome Powell at the Jackson Hole Symposium that further policy action will remain data-dependent. He further added that inflation is getting responsive to the labor market.

US firms have slowed down their hiring momentum due to the deteriorating demand environment. Also, firms are underutilizing their entire operating capacity, which reduces demand for fresh payrolls. On Tuesday, JOLTS Job Openings data also remained weaker than expectations. Employers invited applications for 8.827M vacancies against 9.165M job openings in June.

Meanwhile, S&P is expected to open on a flat note, following cues from overnight futures. The 10-year US Treasury yields dropped further to near 4.10% as investors hope that interest rates by the Fed are peaked for now.

Silver price is approaching the horizontal resistance plotted from July 20 high around $25.27 on a two-hour scale. Upward-sloping 50-period Exponential Moving Average (EMA) indicates that the upside momentum is extremely bullish.

The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, which indicates that the upside momentum is active.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.86 at the time of writing. Pair opened at 24.72 and is trading with a change of 0.57 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.31, 50 SMA 23.56, 100 SMA @ 23.97 and 200 SMA @ 23.39.

The previous day high was 24.8 while the previous day low was 24.18. The daily 38.2% Fib levels comes at 24.56, expected to provide support. Similarly, the daily 61.8% fib level is at 24.41, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 24.33, 23.94, 23.71
• Pivot resistance is noted at 24.95, 25.18, 25.57

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