Silver prices surged to weekly highs above $62.00 during early European trading Friday, with XAG/USD touching $62.15 as traders digest disappointing US employment data. The precious metal extended its rally following weaker-than-expected Nonfarm Payrolls figures that significantly reduced market expectations for Federal Reserve interest rate hikes in 2025.
The softer jobs report has provided immediate support to non-yielding assets like silver, as lower rate expectations diminish the opportunity cost of holding precious metals. Traders and brokers should note this move occurs within what technical analysts describe as a broader bearish setup, suggesting the rally may face resistance at current levels.
Market participants across forex and commodities desks are repositioning as the dovish NFP data reshapes Fed policy outlook. The employment miss adds to growing concerns about US economic momentum while simultaneously boosting appeal for safe-haven and industrial metals.
FXnCO Insight
Traders should monitor $62.15 resistance closely while remaining cautious of the overarching bearish technical structure that could limit upside potential despite short-term momentum from dovish Fed repricing.
Source: FXStreet