 Silver price retreated from a two-week high on Thursday amid a stronger US dollar. The greenback gained after data showed manufacturing activity contracted, while US jobs data pointed to weakness in the labour market.
The US Bureau of Labor Statistics (BLS) revealed that the number of Americans filling for unemployment benefits rose compared to the previous week’s report and exceeded economists’ estimates.
US Initial Jobless Claims for the week ending July 27 jumped to 248,000, above estimates of 236,000 and the prior week’s 235,000
The Institute for Supply Management (ISM) Manufacturing PMI for July fell deeper into contractionary territory from 48.5 to 46.8 and missed estimates for an expansion to 48.8, marking the lowest reading since December 2023.
The dollar DXY rallied to 0.3% after falling the previous day as central banks continued to roil currency markets.
While the U.S. Federal Reserve held interest rates steady at its policy meeting on Wednesday, Chair Jerome Powell said interest rates could be cut as soon as September if the U.S. economy follows its expected path.
Another reason driving precious metals prices is geopolitical risks. Tensions in the Middle East remain high after Hezbollah’s attacks on Israel over the weekend and the retaliation of the latter, which killed senior Hamas and Hezbollah officials.
Today, U.S. payrolls report for more cues on the Fed’s policy path.
Technical Outlook : Silver price
Silver prices retreated from the day’s high of 84,534 and made a low 82,511 before settling at 82,594.
On the above chart, prices struggled to cross the previous swings high and formed a long bearish candlestick, which is indicating some pressure in the near future. Hence, prices expected to test immediate support 81,775-81,250 very soon.
On the upside, immediate resistance is seen at 84,640 a break above only prices could recover towards 85,550-86,850.
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Commodity Samachar
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