- The XAG/USD trades near the $24.20 level with mild losses.
- Jobless Claims for the third week of December came in higher than expected.
- US yields are mildly up, still near multi-month lows.
- Markets anticipate a sizeable 160 basis point rate cuts for 2024.
In Thursday's trading session, the Silver price (XAG/USD) trades neutral at about $24.20. That being said, the upside is open for the precious metal as dovish sentiment regarding the Federal Reserve's monetary policy and weaker-than-expected US Jobless Claims data may pave the way for further upward movements.
Recognizing the inflation decelerating at the last 2023 meeting, the Federal Reserve gave assurances of no rate increases in 2024 while suggesting a 75 basis points reduction. This has led markets to anticipate a rate decrease in both March and May and the dovish market bets gained momentum following the release of soft Personal Consumption Expenditures (PCE) from November, the Fed's favored inflation metric. As these figures provided additional proof of economic deceleration, they subsequently weakened the US Dollar and yields favoring the metal's advance.
On Thursday, it was reported that the Jobless Claims for the week ending in December 22 rose to 218K, vs. the 210K expected and accelerated from the last 206K, which seems to be applying further pressure on the US Dollar.
That being said, the US bond yields are recovering but are still near multi-month lows. The 2-year rate stands at 4.27%, while the 5-year and 10-year yields are observed at 3.82% each. These upward movements may limit the upside during the session for the grey metal as US Treasury yields often represent their opportunity cost.
XAG/USD levels to watch
The indicators on the daily chart reflect a bullish bias, but there are some signs of buying exhaustion. The Relative Strength Index (RSI), flat and in positive territory, coupled with the green bars of the Moving Average Convergence Divergence (MACD) being flat, further emphasizes the inertia from the buyer's side, which seems to be running out of steam.
Despite the short-term mixed outlook, the price remains above the 20,100,200-day Simple Moving Averages (SMAs), illuminating the stronghold of the bulls in larger time frames.
Support Levels: $24.00 (20-day SMA), $23.65 (200-day SMA), $23.50.
Resistance Levels: $24.40, $24.60, $24.80.
XAG/USD daily chart
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
EUR/USD retreats from daily highs, holds above 1.0800
![EUR/USD retreats from daily highs, holds above 1.0800](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
![GBP/USD struggles to hold above 1.2800 after US jobs data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/british-banknotes-14144912_XtraSmall.jpg)
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
![Gold approaches $2,380 on robust NFP data](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stack-of-golden-bars-in-the-bank-vault-60756080_XtraSmall.jpg)
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
![Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_2_XtraSmall.jpg)
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
![French Elections Preview: Euro to “sell the fact” on a hung parliament scenario](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/France/pantheon-paris-with-french-flag-8748101_XtraSmall.jpg)
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.