Today, silver has increased by 1.36%, driven by the Federal Reserve’s dovish stance on interest rates and geopolitical tensions.
Key Points
- The ISM Manufacturing PMI and jobless claims raised economic concerns, boosting safe-haven demand for silver.
- Upcoming US Non-Farm Payrolls and ISM Services PMI reports could impact silver prices.
- Silver’s short-term outlook is cautiously bullish above the 200 EMA and pivot point, with the potential to test higher resistance levels.
Silver Daily Price Analysis – 02/08/2024
Yesterday was a tough day for Silver. It opened at $28.979 but closed down at $28.500, resulting in a 1.72% drop. This drop was influenced by various factors, including the recent U.S. manufacturing and employment data.
The ISM Manufacturing PMI fell to an eight-month low of 46.8 in July, which was below the expected 48.8, and initial jobless claims for the week ending July 26 rose to 249K, surpassing the forecast of 236K. These figures raised economic concerns and increased risk aversion among investors, which typically supports the prices of safe-haven assets like silver.
Today, Silver opened at $28.503 and has climbed to $28.884, marking a 1.36% increase so far. This upward movement is partly due to the dovish sentiment from the Federal Reserve, which maintained interest rates at 5.25%-5.50% in July and hinted at possible rate cuts due to easing inflation and a slowing labor market. This dovish stance has weakened the US dollar, making non-yielding assets like silver more appealing.
Additionally, heightened geopolitical tensions, particularly the assassination of Hamas leader Ismail Haniyeh in Tehran, have driven investors towards safe-haven assets, further boosting silver prices.
Key Economic Data and News to Be Released Today
Looking ahead, several high-impact economic data releases could influence silver prices. Key among them is the US Non-Farm Payrolls report, which is expected to provide insights into the labor market’s health. A weaker-than-expected jobs report could reinforce the Fed’s dovish stance, putting further downward pressure on the US dollar and potentially driving silver prices higher.
Silver Technical Analysis – 02/08/2024
Given the current position above the 200 EMA and the pivot point, the short-term outlook for silver remains cautiously bullish. However, the price needs to break and hold above R1 ($28.980) to confirm further upside potential. The consolidation around $28.856 indicates that the market is taking a breather after the recent rally.
If silver can maintain its position above the pivot point and the 200 EMA, it is likely to test R1 and possibly move towards R2. A failure to break above R1 could see the price retesting support levels at the pivot point and S1.
Silver Fibonacci Key Price Levels 02/08/2024
Short-term traders planning to trade XAG/USD today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 28.270 | 28.980 |
| 28.051 | 29.199 |
| 27.696 | 29.554 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
