Silver Turns Bearish After Us Jobs Report

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Silver Turns Bearish After Us Jobs Report

Silver (XAG/USD) Turns Bearish Under $2.050 After US Jobs Report

After the release of JOLTS job data from the US BLS, the prices of Silver (XAG/USD) turned lower once again. As per the jobs report, around 9.61 million new jobs were posted by US employers against a forecast of only 8.8 million.

After the JOLTS report, the DXY turned higher once again and touched the 10.7.20 level (an 11-month high). Similarly, the US bond yields also experienced an upside and were near 4.75%. Overall, the JOLTS report shows a good picture of the US economy as well as the US labor market.

According to economists, the recent jobs report indicates that consumer spending will pick up along with an increase in wages as well.

For now, the focus is on September's employment data (ADP) due shortly. The forecast is that the US economy will add roughly 160,000 employees, while last month's value was around 177,000.

Similarly, the S&P 500 is also bearish as the market mood is very cautious, which means the investors are seeking safety. The core issue behind the bearish trend in the S&P 500 is the high chances of another rate hike in the USA before the year 2023 ends. According to various Fed officials, the Federal Reserve is far from being done with the interest rate hikes this year.

Looking back at the Silver (XAG/USD) technical chart, the D1 shows the formation of head & shoulder patterns. This means the chances of a sell-off are very high, which is bad news for the precious metals market.

For now, the white metal is already below the head & shoulder formation's neckline, which means we are now en route towards the target of the H&S formation. The nearest support for the XAG/USD can be found near the 19.93 (low of March 8).

Furthermore, the XAG/USD is also below the 200 EMA, which further adds evidence of a long-term bearish trend. As for the RSI, it is printing values in the bearish range (20 - 40), which also hints at more downside.

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