Silver Price Forecast: XAG/USD soars on weaker Job Openings, US Dollar cracks

• Silver price strengthens after US JOLTS Job Openings were recorded lower at 8.827M vs. expectations of 9.465M.
• The US Dollar drops vertically to near 103.80 as investors hope that labor market conditions are losing resilience.
• Silver price comes out of the consolidation forms in a narrow range around $24.40

Silver price (XAG/USD) strengthens as the United States Bureau of Labor Statistics reported significantly lower fresh Job Openings in July. US firms invited fresh applications for 8.827M vacancies against June’s reading of 9.165M while investors anticipated 9.465M openings. This indicates that the hiring process has slowed down.

The US Dollar Index (DXY) comes under extreme pressure and drops vertically to near 103.80 as investors hope that labor market conditions are losing resilience.

Meanwhile, the S&P500 opens on a positive note despite the cautionary market mood ahead of the Automatic Data Processing (ADP) Employment Change data for August, which will be released on Wednesday at 12:15.

The economic data will provide cues about the status of the labor market. Robust talent acquisition could allow the Federal Reserve (Fed) to keep doors open for further policy tightening. The significance of August labor market data is very high as Fed Chair Jerome Powell conveyed that further policy action will be data-dependent.

Silver technical analysis

Silver price comes out of the consolidation forms in a narrow range around $24.40, demonstrating an inventory shift phase after a rally. The white metal forms a Bullish Flag chart pattern, which is a trend-following pattern. Upward-sloping 50-period Exponential Moving Average (EMA) continues to provide support to the Silver price.

A confident move into the bullish range of 60.00-80.00 by the Relative Strength Index (RSI) (14) will activate the upside impulse.

Silver two-hour chart