Silver is currently around the $36.00 mark as the market awaits more US job data to gauge what the Federal Reserve might do with interest rates. Recent US reports showed job openings were higher than expected and the ISM Manufacturing PMI improved, which has strengthened the US Dollar. Technical indicators suggest that the market is uncertain, with Doji candles appearing on the daily chart and the 4-hour RSI around 50. Over the past three weeks, silver has been trading between $35.40 and $37.35, following a rise from early May lows. If silver drops below $35.40, it could confirm a bearish head and shoulders pattern, which may push prices down to around $34.10 and $33.43. However, resistance between $36.60 and $36.85 is limiting any upward movement towards the June 18 high of $37.35. Historically, silver is valued for its practical uses and as an investment. It can be traded physically or through ETFs. Its price is influenced by geopolitical events, interest rates, industrial demand, and movements in the US Dollar, particularly in electronics and solar energy. The Gold/Silver ratio helps to assess their relative values since both are considered safe-haven assets. Since silver is hovering around $36.00, its price action is strongly related to broader trends driven by US economic data. These numbers affect expectations about monetary policy. Last week’s data on job openings and the rise in the manufacturing PMI boosted the US Dollar, which in turn affected dollar-denominated commodities like silver. Recent charts show a lack of clear direction in short-term trading. Doji formations suggest uncertainty, and the 4-hour Relative Strength Index remains flat around 50. This indicates that neither bulls nor bears are in control. Silver has been consolidating in the $35.40 to $37.35 range, following a sharp rise since early May, but there has been little follow-through. If prices fall below $35.40, it could confirm a bearish pattern, targeting $34.10 and $33.43. On the upside, resistance in the $36.60 to $36.85 range is preventing advances, hindering attempts to retest the June 18 high of $37.35. Without a clear close above that level, the outlook remains neutral to slightly bearish. Silver reacts based on several macro factors, including industrial demand from sectors like electronics and solar energy, as well as the strength of the dollar. Jerome Powell and the Federal Reserve influence the market as investors anticipate potential rate changes based on ongoing labour and inflation data. These updates should be monitored closely for their impact on metals demand. For example, rising interest rates tend to negatively affect non-yielding assets like silver, while supply-demand fundamentals also play a crucial role in determining value. The gold-to-silver ratio remains an important indicator. When it widens, it helps us assess whether silver is underperforming or outperforming gold. Both metals are viewed as safe havens, especially during geopolitical instability or inflation fears, so changes in sentiment can lead to quick price shifts. As we look ahead to upcoming US economic reports related to employment and inflation, this data could reignite market volatility. It’s crucial to base decisions on price movements rather than predictions. Currently, the short-term technical indicators show caution, so it’s wise to keep positions sized for volatility and watch for volume increases if a breakout happens. Clearly defined risk parameters are essential; a drop below this month’s lower threshold could mean a downward momentum shift. Clear trends and direction are likely to arise with forthcoming data. In the meantime, it’s best to respond to price movement rather than speculation.

here to set up a live account on VT Markets now