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Silver stays near one-month highs above $60.9 despite pullback

Silver is rising for a second straight day, with analysts pointing to lower US Treasury yields and reduced odds of an immediate September rate hike.

Reported · Written up by our desk · Major Pairs

Silver (XAG/USD) held above the upper end of its recent four-week range, backing off from resistance near $61.90 to around $61.24 at the time of writing, while still sitting above the $60.90 area, according to FXStreet.

FXStreet reports the metal is supported by lower US Treasury yields, with soft US economic data and lower oil prices reducing expectations for near-term Federal Reserve rate hikes. Analysts at MUFG also cited renewed US dollar weakness since the latest FOMC meeting, noting the dollar index fell back below 100.0 after reaching 101.64 last week.

FXStreet said US Factory Orders and JOLTS Job Openings both missed expectations, and Fed Watch Tool data put the probability of a quarter-point rate hike in September at 58%, down from 67% the prior day. The market is looking ahead to the ADP employment report and especially Friday’s Nonfarm Payrolls to validate rate expectations.

On the technical side, FXStreet said XAG/USD is on track for nearly a 6% rally over the last two days and has breached the neckline of a bullish head and shoulders pattern around the mid-$59.0 region. The next upside level is July’s top at $63.12, while support is seen near $59.35, with the RSI near 68 suggesting the move could face a pullback.

Latest closeSilver $59.77 ▲3.7%|Dollar index 99.88 ▼0.1%

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