Silver is under pressure amid the US dollar bulls

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  • Silver is under pressure from a resurgent US dollar in the forex space.
  • The Fed’s expectations harden in the Fed spokesman before NFP Friday towards a restrictive tendency.

After losing 0.5% yesterday, XAG / USD is down 0.22% in Asia, drifting from a high of $ 25.40 to a low of $ 25.31.

Fed spokesmen have recently crossed the wires by adopting a restrictive stance that supports the US dollar and limits metals in familiar areas.

Speaking at a Wall Street Journal event, Fed’s Bullard said he believed inflation will be more stubborn than some people think. He now sees it at 2 1/2% to 3% in 2022.

Meanwhile, Fed vice chairman Richard Clarida said he expects the conditions for a rate hike to be met by the end of 2022.

The greenback was back in shape, despite July US ADP data missing 330,000 from an estimated 695,000.

In the US session, US 10-year yields were higher to 1.2140% after starting the session on a sharp decline near 1.1270%, bringing the US dollar index DXY above the key level of 92, 20 rose to a previous high of 92.325 in Asia.

“The data contradicted the record number of job vacancies, and we would be cautious if we read too much into the number before Friday’s salary data,” said ANZ Bank analysts.

” The sector with the largest job growth was Recreation and Hospitality (139,000), reflecting the continued reopening of the economy. ”

The question about the data, however, is whether they anticipate a more critical job report this Friday.

Unless the nonfarm payrolls data is overwhelming, a break from 91.80 DXY is likely and would be a spike for precious metals.

DXY north trajectory

Technical silver analysis

However, the bar is low for yet another slide should the US data feed the inflation narrative further.

Daily chart

Following the resistance at 25.50 in mid-July, the white metal cannot break free from the dollar’s tight grip.

A break above the 61.8% Fibo near 25.90 of the weekly downward momentum will open the way to the weekly countertrend line.

Weekly chart

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