Silver Price Forecasts: XAG/USD, capped below $62.00 but steady near one-month highs

NEW YORK (August 5) Silver (XAG/USD) has found some resistance at the $61.90 area on Wednesday, before pulling back to $61.24 at the moment of writing, but remains above the top of the last four weeks’ range, at the $60.90 area. The white metal appreciates for the second consecutive day, supported by lower US Treasury yields, as soft US data and lower Oil prices have dampened expectations of immediate Federal Reserve rate hikes.

Analysts at MUFG observe that the US Dollar has faced renewed selling since last week’s FOMC meeting, with the “dollar index back below the 100.00-level after hitting a high at 101.64 last week.” They highlight this pullback as evidence that the latest bout of Dollar weakness has extended in the wake of the policy decision.

On Tuesday, US Factory Orders and JOLTS Job Openings missed expectations, and investors pared back hopes of a quarter-point rate hike in September to 58% from 67% a day before, according to data by the CME Group's Fed Watch Tool. The market will be attentive to the US ADP employment report due later on Wednesday and, above all, to the Nonfarm Payrolls release on Friday, to confirm those views.

FXStreet