Silver Price Analysis: XAG/USD Loses Ground on Weak ADP Employment Numbers, USD Steady

• XAG/USD stands at $24.05, with slight losses.
• The change in Automatic Data Processing Inc. employment in the US was lower than expected.
• US third quarter unit labor costs were revised down to -1.2%.
• The US dollar remains at weekly highs; Yields in the US give ground.

He XAG/USD It retreated to the $24.05 level on Wednesday, trading with slight losses. However, downward moves could be limited as negative US labor market numbers could trigger new dovish bets from the Federal Reserve (Fed), which could push US yields further lower.

US Unit Labor Costs for the third quarter were revised downwards and fell -1.2%, slightly below the consensus estimate of -0.9%. Additionally, Automatic Data Processing Inc. (ADP) reported a lower-than-expected employment change for November. These figures stood at 103,000, compared to the consensus estimate of 130,000 and the previous figure of 106,000, shedding light on a certain cooling in the pace of job creation in the labor market.

However, on Friday, traders will closely monitor several key statistics released by the US Bureau of Labor Statistics, which will offer a more conclusive outlook on the US labor market. The unemployment rate, Non-Farm Payrolls and average hourly earnings, reports closely followed by the Fed, may condition the entity’s next decisions and will probably generate volatility in the US bond market and, therefore, in the price. of metals. Additionally, the sector’s trend may begin to shape the timeline for when the Fed will begin cutting rates, which will also pace the dollar’s price dynamics.

Currently, US bond yields are trending downward. The 2-year Treasury bond yield is set at 4.59%, while the 5-year and 10-year yields are seen at 4.11% and 4.12%, respectively. This move may support non-yielding metals, as US Treasury yields are often considered their opportunity cost.

XAG/USD levels to watch

The Relative Strength Index (RSI) shows a negative slope within positive territory, while the presence of ascending red bars on the Moving Average Convergence Divergence (MACD) further supports the idea that on the daily chart, sellers are winning. traction.

However, the price trades above the 20, 100 and 200 day simple moving averages (SMA). This setup is often considered a strong signal of underlying bullish control, suggesting that buyers could maintain trend dominance in the medium term despite short-term bearish pressure.

Support Levels: $23.90 (20-day SMA), $23.50, $23.30 (100-day SMA).
Resistance Levels: $24.50, $24.70, $25.00.

XAG/USD daily chart