- Silver price faced challenges as traders adopt caution ahead of US Nonfarm Payrolls due on Friday.
- A softer US NFP report could support the Fed's adopting a less hawkish stance on its rate trajectory.
- Egypt has taken the lead in revitalizing stalled peace between Israel and Hamas, undermining the safe-haven Silver.
Silver price snaps its two-day winning streak, trading around $26.50 per troy ounce during the European session on Friday. The prices of the white metal faced challenges as traders exercised caution ahead of the Nonfarm Payrolls (NFP) data from the United States (US) due later in the day. The US NFP report is expected to print a reading of 243K for April, compared to 303K prior, which could offer support for the Federal Reserve’s (Fed) stance to be less hawkish on interest rate policy.
On Thursday, the report of the US Initial Jobless Claims indicated that the number of Americans filing new claims for unemployment benefits for the week ending April 26, showed no change from the previous week. It remained at 208K, the lowest level in two months and significantly below market expectations of 212K. This could give the Federal Reserve flexibility to delay interest rate cuts. The higher interest rates for a longer period could dampen the demand for non-yielding assets like Silver.
The US Federal Reserve kept interest rates unchanged at 5.25-5.50% on Wednesday, signaling a continued inclination toward future rate cuts. The downside for the Silver price remains limited in the wake of the prevalent US Dollar (USD) selling bias, led by Fed Chair Jerome Powell's less hawkish remarks. Powell dismissed any further interest rate hike during the FOMC conference after the policy decision. This, in turn, acted as a tailwind for the Silver price.
In the Middle East, the decreasing geopolitical tensions are weighing on safe-haven Silver, fueled by hopes for a ceasefire deal between Israel and Hamas. Egypt has taken the lead in revitalizing stalled peace talks this week, supported by US Secretary of State Antony Blinken's call for Hamas to accept Israel's ceasefire proposal in exchange for the release of hostages.
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 clings to recovery gains above 0.6200, focus shifts to US ISM PMI
AUD/USD sustains the recovery from two-year troughs, holding above 0.6200 in Friday's Asian trading. The pair finds footing amid a pause in the US Dollar advance but the upside appears elusive as markets turn cautious amid China concerns and ahead of US ISM PMI data.
USD/JPY eases toward 157.00 as risk sentiment sours
USD/JPY is extending pullback from multi-month high of 158.07 set on Thursday. The pair drops toward 157.00 in the Asian session on Friday, courtesy of the negative shift in risk sentiment. Markets remain concerned about China's econmic health and the upcoming policies by the Fed and the BoJ.
Gold price appreciates amid Biden's discussions about potential strikes on Iran
Gold price edges higher for the fourth consecutive session on Friday, building on a stellar performance in 2024 with gains exceeding 27%, the metal’s best annual return since 2010. This sustained rally is attributed to strong safe-haven demand amid persistent geopolitical tensions in the Middle East and the prolonged Russia-Ukraine conflict.
Bitcoin, Ethereum and Ripple eyes for a rally
Bitcoin’s price finds support around its key level, while Ethereum’s price is approaching its key resistance level; a firm close above it would signal a bullish trend. Ripple price trades within a symmetrical triangle on Friday, a breakout from which could signal a rally ahead.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.