- Silver surged above $23.00 on soft work, services PMI data.
- The US labor force saw new additions of 150,000 vs. expectations of 180 thousand.
- Market sentiment is upbeat as investors hope the Fed is done raising interest rates.
silver the price (XAG/USD) quickly climbs to almost $23.30 United States The Bureau of Labor Statistics (BLS) reported that the pace of business hiring was slow in October. The white metal is recovering as investors hope that a softer-than-expected labor market report will allow Federal Reserve (Fed) policymakers to keep interest rates unchanged in the 5.25-5.50% range until the end of 2023.
According to the US NFP the workforce witnessed new additions of 150k vs. expectations of 180K and September reading of 297K (revised below). The unemployment rate rose to 3.9% versus expectations of 3.8%. Wage growth also slowed to 0.2% from a 0.3% increase in September.
Market sentiment is upbeat as slower labor market growth may reduce consumer spending and ease consumer inflation. Meanwhile, the S&P500 opened on a bullish note as investors hope it does Fed is done by raising interest rates. US dollar index (DXY) retook its six-week low below 105.20. Yields on 10-year US Treasuries fell further to 4.53%.
The Institute of Supply Management (ISM) reported that the services PMI for September fell sharply to 51.8, compared with expectations of 53.0 and an earlier reading of 53.6.
Technical analysis of silver
The price of silver forms a bullish flag chart on the four-hour scale. The chart above shows the movement of stocks from retail participants to institutional investors. The white metal remains subdued by the 200-period exponential moving average (EMA) at $22.80. Horizontal resistance is drawn from the September 22 high of $23.77.
The Relative Strength Index (RSI) (14) is trying to move into the bullish zone of 60.00-80.00. If the RSI (14) were to make it, bullish momentum would be triggered.