Silver jumped above $24.5, hitting a new 4-week high and confirming the recent bullish trend.
The decline of the US dollar, following weaker than expected macroeconomic data, lifted silver prices.
From a technical perspective, the outlook has already significantly improved with the rebound from $22.7 to $24.3 posted last week. This week can be seen as the natural continuation of this movement and the next key area appears to be $25.0-25.2, the top reached last month.
The JOLTS data release significantly impacted silver and gold. But there is plenty of macroeconomic data still to come this week. Indeed, later today, will be the turn of the ADP nonfarm employment, but the main market driver of the week remains the all-important Non-Farm payrolls data, due to be released on Friday. Numbers above expectations would increase the likelihood of a further interest rate hike in the US in one of the next meetings of the Federeal Reserve. This could boost rates from the current 5.50% to 5.75%. On the other hand, any signal that the American labour market is slowing could loosen the hawkish views of some of the members of the US Central Bank, making a new hike less likely.
Silver is likely to gain ground if the data comes in weaker than expected while a forecast beat would increase the chances of seeing a correction, even if the main trend still appears positive.
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