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Silver rises above July peak, bullish head and shoulders points to $67.17
The rally follows weaker US nonfarm payrolls, with CME FedWatch cutting September hike odds to 44%, and investors now look to Wednesday CPI for confirmation.
Silver (XAG/USD) is extending a recovery for a second straight day, trading around $64.30 after confirming it has moved above July’s peak in the $63.30 area, FXStreet reports.
The pickup accelerated after downbeat US nonfarm payrolls, which cooled expectations for further Federal Reserve rate hikes. Bureau of Labour Statistics data showed net jobs fell by 23K in July versus an 80K gain expected, and prior months’ employment growth was revised lower, the outlet notes.
As expectations shifted, the US Dollar Index stayed below the key 100.00 level and futures markets cut the odds of a September rate hike to 44% from 67% a week earlier, according to CME Group’s FedWatch Tool, sending the dollar lower across the board.
Technically, FXStreet points to a bullish head and shoulders pattern, citing a measured target at $67.17 and warning that a move back below $63.30 could expose lower support near $61.00 and down to $59.40. The article adds that investors are watching Wednesday’s US CPI to confirm the new rate outlook.
Latest closeSilver $61.56 ▼0.9%|Dollar index 99.98 ▲0.3%