Silver Pulls Back Below $67 as Traders Brace for US Jobs Data

Key Moments

Price Action Ahead of US NFP

Silver (XAG/USD) trades softer in Asian dealings on Friday, interrupting a two-session climb that had taken prices to a weekly peak in the prior session. The metal is lower by 0.30% on the day and is changing hands just under the $67.00 mark, as market participants stay cautious ahead of the forthcoming US Nonfarm Payrolls (NFP) report.

Into this data event, reduced expectations of a September interest rate increase by the US Federal Reserve, together with falling US bond yields, are keeping the US Dollar pinned near its weakest levels in more than a week. That backdrop is generally constructive for USD-denominated commodities such as silver, though the current chart structure suggests that the latest rebound from the $63.30 area may be running into technical headwinds.

Technical Landscape: Mixed Signals and Key Levels

XAG/USD continues to trade below the 200-day Simple Moving Average (SMA), currently positioned at $72.84, as well as below the midpoint Fibonacci retracement of the May-July decline. This positioning underscores a broader downside bias, even as prices attempt to build on recent gains.

Momentum indicators are not confirming a strong bullish narrative. The Relative Strength Index sits in the mid-50s, while the Moving Average Convergence Divergence (MACD) has slipped into negative territory. Together, these readings highlight waning upside momentum and reinforce a cautious near-term stance for buyers.

Key Support and Resistance Zones

On the upside, the immediate hurdle is located at the 38.2% Fibonacci retracement at $67.83. Above that, a more prominent resistance band is clustered around the 50.0% retracement at $71.89 and the 200-day SMA at $72.84. A decisive move through this area would be needed to temper the prevailing bearish bias and open the way toward the 61.8% retracement near $75.95.

On the downside, initial support is identified at the 23.6% Fibonacci level at $62.81. A more substantial base is seen around the prior cycle low at the 0.0% retracement at $54.69, where buying interest would be anticipated to reappear if downward pressure intensifies.