Silver Price Forecast: XAG/USD rallies to near $34.50 after weak US Job Openings data

• Silver price surges to near $34.50 as the US JOLTS Job Openings data for September has come in weaker-than-expected.
• The US Dollar surrenders its intraday gains as soft job vacancy data pointed to a slowdown in labor demand.
• Investors will focus on a slew of US economic data.

Silver price (XAG/USD) discovers strong buying interest in Tuesday’s North American session as the United States (US) Bureau of Labor Statistics (BLS) has reported weak set of JOLTS Job Openings data for September. The white metal extends its rally to near $34.50 as soft job opening numbers have pointed to a slowdown in the job market.

Weak US job openings data has weighed on the US Dollar (USD), which has given up its entire intraday gains. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls back to nearly 104.30 after refreshing an almost three-month high of around 104.60. 10-year US Treasury yields surrender some of its intraday gains but hold the key support of 4.20%.

This week, investors will pay close attention to the US Q3 Gross Domestic Product (GDP), Personal Consumption Expenditure Price Index (PCE) data for September, the Nonfarm Payrolls (NFP), and the ISM Manufacturing PMI data for October published this week.

The economic data will indicate how the Federal Reserve’s (Fed) monetary policy will shape the remainder of the year.

Meanwhile, the outlook of the Silver price will remain firm amid uncertainty over US presidential elections on November 5. Traders expect former US President Donald Trump to return to power, while national polls have shown fierce competition with current Vice President Kamala Harris. The risk profile has remained favorable for safe-haven assets as Trump is expected to implement protectionist policies, which will result in an inflationary environment and will have an adverse impact on the currencies of the US's major trading partners.

Silver technical analysis

Silver price aims to recapture a fresh over 12-year high near $35.00 after a breakout of three-day consolidation. The horizontal support plotted from the May 21 high of $32.50, on a daily timeframe, will act as a key cushion for Silver price bulls from where it delivered a five-month consolidation breakout. Upward-sloping 20-day Exponential Moving Average (EMA) near $32.70 signals more upside ahead.

The 14-day Relative Strength Index (RSI) stays in the 60.00-80.00, pointing to an active bullish momentum.

Silver daily chart