- Silver price falls back as US Job Openings data outperformed expectations.
- Upbeat job openings data indicate that labor demand by US employers improves.
- Silver price delivered a breakdown of the H&S chart pattern, which resulted in a vertical sell-off.
Sliver price (XAG/USD) resumes its downside journey as the United States Bureau of Labor Statistics has reported an upbeat JOLTS Job Opening report. In August, employers posted 9.61 million job vacancies against expectations of 8.8 million.
The US Dollar Index (DXY) climbs above a fresh 11-month high at 107.20 on higher-than-expected job vacancies. The 10-year US Treasury yields jump to near 4.75%. Upbeat job openings data indicate that labor demand by US employers improves. This would elevate consumer spending as a significant demand for labor would be offset by offering higher wages from employers.
Meanwhile, investors shift focus to Automatic Data Processing (ADP) Employment Change data for September, which will be published on Wednesday. As per the estimates, the US economy recorded fresh additions of 160K employees against 177K reading in August month.
The S&P500 opens on a bearish note amid a cautious market mood. The escalating expectations about one more interest rate hike from the Federal Reserve (Fed) in the remainder of 2023 have dampened the market mood.
Fed policymakers: Cleveland Fed Bank President Loretta Mester and Fed Governor Michelle Bowman expect that the central bank is not done with hiking interest rates.
Silver technical analysis
Silver price delivers a breakdown of the Head and Shoulder chart pattern on a daily scale, which results in a vertical sell-off. The white metal breaks sharply below the neckline of the aforementioned chart pattern plotted from June 23 low at $22.11. Potential support is placed from March 08 low at $19.93.
The asset trades below the 200-day Exponential Moving Average (EMA), which indicates that the long-term trend is bearish.
The Relative Strength Index (RSI) (14) slips into the bearish range of 20.00-40.00, which warrants more downside.
Silver daily chart
-638319395259312764.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds below 0.6750 on US Dollar recovery
The AUD/USD pair edges lower to 0.6745, snapping the four-day winning streak during the early Asian session on Monday. The renewed US Dollar demand amid the cautious mood weighs on the pair.
EUR/USD bets for soon-to-come US rate cuts hit the US Dollar
The EUR/USD pair finally gathered directional strength following a two-week consolidative stage and reconquered the 1.0800 mark, currently trading ahead of the close at around 1.0820 and after hitting 1.0841, its highest in three weeks.
Gold: Points to bullish tilt ahead of Powell’s testimony, US inflation data
Gold benefited from broad-based USD weakness and advanced beyond $2,380. Fed Chairman Powell’s testimony and US CPI data could significantly impact Gold’s performance this week. XAU/USD’s near-term technical outlook points to a bullish tilt.
Ethereum records another day of heavy liquidations as Mt. Gox bearish pressure persists
Ethereum is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment's supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.