Silver price is trading lower ahead of the US jobs data. Investors are especially keen on the ADP national employment report. Analysts expect a reading of 650,000, which is lower than April’s 742,000. Since February, the numbers have come in lower-than-expected, which is a bearish catalyst for the US dollar and a subsequent boost for silver price.
The US initial jobless claims data is also scheduled for release later today. Economists forecast a reading of 390,000 compared to the prior week’s 406,000. A decline in unemployment claims usually boosts the greenback while pushing silver price lower.
The rebounding US bond yields are also exerting pressure on silver price. On the first day of the new month, the benchmark 10-year Treasury yields were at 1.64. At that level, it was at its highest point in over week. However, on Tuesday, it dropped to an intraday low of 1.58. It is currently recouping some of the previous losses at its current 1.60; up by 0.86%. The 5 and 30-year Treasury yields are also up by 1.26% and 0.07% respectively.
Rising Treasury yields are usually a bullish catalyst for the US dollar. At the time of writing, it was up by 0.14% at 90.03. Based on the inverse correlation that exists between the greenback and precious metals, the higher yields are curbing the gains by silver price.
Silver price technical outlook
Silver price is down by 1.12% at 27.85. On a four-hour chart, it is trading along the 50-day EMA and slightly below the 25-day EMA with an RSI of 47. Based on these indicators, the outlook is rather neutral. The precious metal is likely to trade within a tight range in the near term. On the downside, it may drop further to find support at Tuesday’s intraday low at 27.67. On the other hand, it may rise to the prior resistance level at 28.23.