Silver Price Forecast: XAG/USD falls below $79.50 due to profit-taking
LONDON (January 7) Silver price (XAG/USD) depreciates by 1.75% after three days of gains, trading around $79.30 per troy ounce during the European hours on Wednesday. The price of the grey metal declines as investors lock in profits following its rally toward record highs.
The dollar-denominated precious metals, including Silver broadly pulled back as the US Dollar (USD) strengthened ahead of the upcoming US key economic data that could shape expectations for Federal Reserve (Fed) policy.The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the second successive day and trading around 98.60 at the time of writing.
US ADP Employment Change and ISM Services Purchasing Managers’ Index (PMI) data for December will be eyed later in the day. Traders will shift their focus toward the US Nonfarm Payrolls (NFP) due on Friday, which is expected to show job gains of 55,000 in December, down from 64,000 in November.
Fed Governor Stephen Miran said on Tuesday that the US central bank should cut interest rates aggressively this year to sustain economic momentum, while Minneapolis Fed President Neel Kashkari warned the unemployment rate could “pop” higher. The CME Group's FedWatch tool suggests Fed funds futures continue to price in about an 82.8% probability that the US central bank will keep rates unchanged at its January 27–28 meeting.
The safe-haven Silver struggles amid increased risk appetite as traders have so far largely shrugged off escalating geopolitical tensions worldwide following the United States (US) intervention in Venezuela and the capture of President Nicolas Maduro.
FXStreet
