Silver price stalls ahead of U.S. jobs report, suggesting possible reversal
Traders await ADP jobs report defining silver’s next direction
Silver started the week with a strong upward surge, gaining 5.27% and reaching an eight-month high at $34.80. The move placed the white metal within striking distance of its 2024 high at $34.85, a key resistance level not visited in over a decade. The sharp rally was driven by softening dollar sentiment from Monday’s session, which temporarily gave commodities room to push higher.
- Silver approaches 2024 high as early-week bullish momentum stalls
- The U.S. Dollar recovery caps silver upside after Tuesday's data-driven dip
- Traders await ADP jobs report defining silver’s next direction
However, Tuesday’s session brought a shift in momentum. Improved US job data and optimism around trade discussions between President Trump and President Xi lifted the dollar, reversing part of silver’s gain. Sellers entered the market aggressively, pushing silver lower by 2.23%. Still, demand at the psychological $34.00 level emerged, supporting the price and lifting it back to $34.51 by the close.
Silver price dynamics (Jan - May 2025). Source: Tradingview
This price behavior printed a Hanging Man candlestick on the daily chart. Although the pattern closed lower, the long lower wick reflects notable buyer interest after early selling pressure. Structurally, the pattern often points to a potential short-term reversal or hesitation near a top, especially when it appears after a strong bullish move.
Silver eyes breakout beyond $34.85 as RSI holds in bullish territory
Wednesday’s price action has so far been uneventful. Since the Asian session, silver has traded in a tight sideways range, showing limited volatility into the European hours. This quiet activity indicates indecision as traders hold off for today’s ADP employment data release, which may shape the dollar’s short-term direction.
From a technical standpoint, silver still holds a bullish bias in the longer term. The daily RSI remains in positive territory though not yet overbought, suggesting there is room for further upside if momentum resumes. Key upside focus remains the 2024 high at $34.85.
On the flip side, if the ADP data strengthens the dollar, silver may revisit support at the $34.00 level, where buyers stepped in on Tuesday. How price reacts at either edge of this current range will likely set the tone for the rest of the week. For now, the metal hovers just below a multi-year milestone as it awaits fresh cues from macroeconomic data.
Gold and silver climbed after weak U.S. manufacturing data dragged the dollar to a six-week low. Metals lifted to multi-week highs as investors rotated into safe-haven assets.
