Silver Rebounds as US Dollar Eases Ahead of Key US Employment Report

VG Markets · 2026-07-02T09:07:05Z
Silver Rebounds as US Dollar Eases Ahead of Key US Employment Report

Silver (XAG/USD) rose about 0.9% to trade near $59.65 during Thursday's session, extending its recovery from Wednesday's seven-month low around $57 as the US Dollar Index (DXY) eased to approximately 101.00 ahead of the June US Nonfarm Payrolls report, scheduled for release at 12:30 GMT.

Market attention remained focused on recent Federal Reserve commentary as well as the upcoming employment report. Investors interpreted recent remarks from Federal Reserve officials as relatively less hawkish than previously expected, contributing to a modest pullback in the US Dollar after it had reached a multi-month high earlier this week.

According to market expectations, the June employment report is forecast to show approximately 110,000 new jobs, compared with 172,000 in May, while the unemployment rate is expected to remain at 4.3%. Earlier economic data presented mixed signals, with ADP reporting that private payrolls increased by 98,000 in June, below market expectations of 113,000, while the ISM Manufacturing PMI softened from market forecasts.

According to CME FedWatch data, markets continued to anticipate the possibility of additional Federal Reserve policy tightening later this year, although expectations moderated following recent economic releases. A stronger-than-expected employment report could support the US Dollar and limit further gains in silver, while weaker labor market data could reinforce expectations of a more cautious policy outlook.

For market participants across Southeast Asia, silver prices remain closely linked to movements in the US Dollar and evolving expectations for US interest rates, both of which can influence demand for precious metals.

From a technical perspective, silver remained below several key resistance levels despite the recent rebound. The 20-day Exponential Moving Average (EMA) near $63.74 continues to represent an important resistance area, while support is located around the June 24 low near $55.63, followed by the psychological $50.00 level. The 14-day Relative Strength Index (RSI) remained near 36, indicating that broader downside momentum had yet to fully dissipate despite the latest recovery.

Sources: TradingEconomics, CME Group FedWatch, US Bureau of Labor Statistics, ADP, ISM. This article is provided for informational purposes only and does not constitute investment advice.