XAG/USD trades above $61.00, supported by lower Treasury yields and softer US economic data reducing rate hike expectations.
Silver (XAG/USD) retreated slightly to $61.24 after testing resistance at $61.90, remaining near one-month highs above $60.90. The metal has risen for two consecutive days, driven by declining US Treasury yields and weaker-than-expected US economic data, which dampened expectations for immediate Federal Reserve rate hikes.
US Factory Orders and JOLTS Job Openings missed forecasts on Tuesday, prompting investors to reduce the probability of a September rate hike to 58% from 67%. The US Dollar Index also fell below 100.00 after peaking at 101.64 last week, extending losses following the FOMC meeting. Market focus now shifts to Wednesday’s ADP employment report and Friday’s Nonfarm Payrolls data.
Technical analysis shows XAG/USD at $61.35, up nearly 6% over two days, with a bullish Head & Shoulders pattern forming. A break above July’s high of $63.12 could reinforce upward momentum.