Key Moments
- Silver (XAG/USD) trades about 0.67% higher near $65.70 during the European session, extending Wednesday’s rebound.
- The US Dollar Index hovers close to Wednesday’s low around 99.45 after weaker-than-expected US ADP employment data for August.
- 10-year US Treasury yields ease back toward 4.77% after touching 4.82%, providing additional support to non-yielding assets like Silver.
Dollar Weakness and Softer Data Lift Silver
Silver prices (XAG/USD) continue to advance on Thursday, building on the prior session’s recovery. The metal is up around 0.67%, trading near $65.70 in the European hours, as the US Dollar (USD) loses further ground amid signs of moderating labor demand in the US private sector.
The US Dollar Index (DXY), which tracks the performance of the Greenback against a basket of six major currencies, is trading close to Wednesday’s trough near 99.45.
On Wednesday, the US ADP reported that the private sector created 38K new jobs in August, missing expectations of 47K and down from the previous reading of 46K. The weaker outcome has set a cautious tone ahead of the August Nonfarm Payrolls (NFP) report scheduled for release on Friday.
A softer US Dollar is improving the relative appeal of Silver, offering a more attractive risk-reward profile for investors. At the same time, a pause in the climb of US Treasury yields is helping to underpin demand for non-yielding assets such as Silver.
Benchmark 10-year US Treasury yields have slipped back toward 4.77% after briefly reaching 4.82%, a level last seen in October 2023.
Technical Overview: XAG/USD Holds Constructive Bias
On the daily chart, XAG/USD is changing hands around $65.92. The pair remains above the 20-day Exponential Moving Average (EMA) at $65.50, reinforcing a constructive short-term outlook as price continues to respect trend support.
The 14-period Relative Strength Index (RSI) stands at 52.85, placing it in neutral-to-positive territory and indicating that bullish momentum is present without yet signaling overbought conditions following the recent advance.
On the downside, initial support is seen at the 20-day EMA at $65.50, a level where buyers are likely to attempt to defend the current upswing if a corrective move develops. On the upside, the August peak at $71.12 remains the key resistance area to watch.
Key Technical Levels
| Metric | Level |
|---|---|
| Spot price (XAG/USD) | $65.92 |
| 20-day EMA | $65.50 |
| Immediate support | $65.50 |
| Key resistance (August high) | $71.12 |
| US 10-year Treasury yield (recent high) | 4.82% |
| US 10-year Treasury yield (recent level) | 4.77% |
| US Dollar Index (DXY) near recent low | 99.45 |
| US ADP Employment Change – August | 38K (vs 47K estimate, 46K prior) |
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