XAG/USD rallies on weaker USD and softer US jobs data, confirming a bullish pattern with momentum indicators supporting further gains.
Silver (XAG/USD) extended gains for a second day, trading near $64.30 after breaking above July’s peak at $63.30. The move follows Friday’s rally, driven by weaker-than-expected US Nonfarm Payrolls data, which reduced Fed rate hike bets and weighed on the USD.
July’s payrolls fell by 23K, missing forecasts of an 80K increase, while prior months’ figures were revised lower. The CME Group’s FedWatch Tool now shows a 44% chance of a September hike, down from 67% a week ago. Investors await Wednesday’s US CPI data for further direction.
Technical analysis confirms a bullish Head & Shoulders pattern, with momentum indicators like RSI and MACD supporting the upward trend. The next resistance level is seen at $67.15.