- 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
EUR/USD targets yearly highs beyond 1.1100
Significant losses in the US Dollar allow EUR/USD to edge closer to its yearly highs, comfortably trading beyond the 1.1100 level after US inflation and jobs data releases.
GBP/USD meets a decent barrier near 1.2950
GBP/USD secures its third straight day of gains, smashing well past the 1.2900 yardstick and reaching new weekly highs, fueled by the increasing selling pressure in the Greenback.
Gold looks consolidative around $3,130 after US data
Following US data releases, Gold prices now seem to have embarked on a consolidative range near the $3,130 mark. This robust performance comes amid a pronounced bearish bias in the Greenback and mixed US yields.
Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge
Cardano stabilizes around $0.62 on Thursday after a sharp recovery the previous day, triggered by US Donald Trump’s decision to pause tariffs for 90 days except for China and other countries that had retaliated against the reciprocal tariffs announced on April 2.
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.