FX.co ★ XAG/USD, SILVER

The silver price (XAG/USD) continues its corrective move below the weekly high of $53.45 towards $51.40 during the European session on Friday. The precious metal faces selling interest amid gains in the US Dollar as traders grow more cautious ahead of the United States (US) Nonfarm Payrolls (NFP) report for October, scheduled for 13:30 GMT. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback against six major currencies, is up 0.36% to around 101.92. Technically, the stronger US dollar makes silver a riskier investment. According to estimates, US employers added 65K new hires, compared to 29K in September. The Unemployment Rate is anticipated to remain unchanged at 4.2%. Average Hourly Earnings, a key gauge of wage growth, is expected to increase 2.9% Year over Year (YoY), compared to 3% in September. On a Month-on-Month (MoM) basis, the wage growth indicator is expected to rise 0.3%, up from 0.1%. US NFP numbers may be less influential for the Fed interest rate forecasts since the comments of recent officials regarding the Fed monetary policy made in late October show that the central bank will go along the monetary tightening route because of upside risks to inflation. Lorie Logan, the Dallas Fed Bank president, stated last week that “at least two more quarter-point rate hikes” are needed since “it is unacceptable” that inflation is not getting back to the 2% target mark. Regarding labor markets, Logan stated, “The labor market is balanced, perhaps tightening a bit.” The weekly chart shows XAG/USD trading at $51.95 and showing continued negative sentiment, as the price is trading below both the 9-week EMA of $56.85 and the 61.8% Fibonacci retracement at $59.35. Furthermore, the current RSI of 36.47 is hovering on the edge of oversold territory, indicating that while negative momentum may be losing strength, sellers remain in control after a prolonged downtrend. Potential upside targets include the 9-week EMA at $56.85, the 61.8% Fibonacci retracement at $59.35, the 50% retracement at $71.24, and the 38.2% Fibonacci retracement at $83.13. As for potential downside targets, we have the 78.6% Fibonacci retracement level at $42.41 and the structural low at $20.84.