XAG/USD rises to near $32.60 as USD corrects ahead of US NFP
Silver price (XAG/USD) moves higher to near $32.60 during European trading hours on Friday. The white metal gains as the US Dollar (USD) corrects ahead of the United States (US) Nonfarm Payrolls (NFP) data for April, which will be published at 12:30 GMT.
The US Dollar index (DXY), which tracks the Greenback’s value against six major currencies, retraces to near 99.90 from the two-week high of 100.37. Technically, a lower US Dollar makes the Silver price a value bet for investors.
The US NFP report is expected to show that the economy added 130K fresh workers, significantly lower than the March reading of 228K. The Unemployment Rate is seen as steady at 4.2%. Investors will pay close attention to the US NFP data as it will indicate the impact of reciprocal tariffs announced by President Donald Trump on the so-called “Liberation Day” on April 2. The labor market data will influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.
Additionally, hopes of a de-escalation in the trade war between the US and China have also supported the Silver price. The demand for Silver as an industrial input would increase if the Sino-US tariff dispute resolves. Market experts would revise their economic projections for China if it secures a trade deal with the US, which were dampened earlier. Silver has applications in various industries such as Electric Vehicles (EVs), mining, and electronics, etc.
However, easing US-China trade tensions will diminish the demand for Silver as a safe-haven asset. Historically, the appeal of safe-haven assets, such as Silver, improves amid heightening global economic tensions.
Source : Fxstreet
