Silver paused a four-day winning streak on Monday, easing to around $61.75 as a firmer US Dollar capped the metal. The pullback followed last week’s 5.55% rally, and traders point to fading Fed rate-hike expectations after soft US jobs data as the near-term support underneath the price.
Silver stepped back on Monday after four straight sessions of gains, with XAG/USD trading around $61.75 as buyers paused. The metal eased from an intraday high of $63.28, its strongest level since June 23, after last week’s 5.55% rally.
A stronger dollar caps the metal
A firmer greenback did most of the work capping silver’s upside. The US Dollar Index, which measures the currency against a basket of six major peers, was trading around 100.12, up 0.22% on the day.
Soft jobs data underpins the outlook
Yet the near-term backdrop still favors silver. Its outlook remains supported by easing expectations of a near-term Federal Reserve interest rate hike, following weaker-than-expected US Nonfarm Payrolls data released on Thursday.
The technical picture, however, points the other way. Silver remains capped below both its short- and long-term moving averages, leaving the metal caught between a supportive rates story and resistance overhead.
Source: FXStreet
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