Technically, the short-term trend is up, a trade through this week’s high at $32.55 will signal a resumption of the uptrend. The daily chart indicates there is plenty of room to the upside with $34.87 the next major target. On the downside, a trade through $31.81 will be a first sign of weakness with th pivot at $31.12 the next major target price.
Traders Look to Jobs Data for Fed Policy Clues
The NFP report is expected to show job growth of 169,000, a slowdown from December’s 256,000 but consistent with recent trends. The unemployment rate is projected to hold at 4.1%, while wage growth is forecast to ease to 0.3% monthly and 3.7% annually—the lowest in months.
A weaker-than-expected report could reinforce expectations for Federal Reserve rate cuts, which would likely support silver prices. However, if the labor market remains resilient, the Fed may hold off on easing, keeping pressure on silver. Any signs of economic weakness, such as rising unemployment or downward revisions to previous data, could accelerate bets on monetary stimulus, boosting demand for the metal.
Tariff Concerns Drive Safe-Haven Demand
Trade tensions are adding another layer of uncertainty to the market. The new U.S. administration’s tariff policies, including fresh duties on China while extending temporary exemptions for Mexico and Canada, have heightened global economic concerns. This has increased silver’s appeal as a hedge against economic instability.
Chicago Fed President Austan Goolsbee has acknowledged that while the economy remains strong, trade uncertainties make the Fed’s policy path less predictable. If labor market conditions deteriorate alongside trade tensions, the case for rate cuts would strengthen, benefiting silver.
Industrial Demand Remains a Key Factor
Silver’s industrial applications continue to provide fundamental price support. The metal is widely used in electronics, solar panels, and medical devices, with the renewable energy sector driving sustained demand. Solar panel manufacturing alone accounts for approximately 10% of global silver consumption.
