Silver Price Forecast: XAG/USD recovery stalls below $31.45 with NFP data eyed

• Silver rally loses momentum with bulls capped right below the last two weeks' range top, at $31,45.
• The Dollar has steadied with investors awaiting the release of the US employment report.
• XAG/USD: Above $31.40, the next target is the November 7 high, at $32.15.

Silver (XAG/USD) rally from last week’s lows near $30.00 has been capped at the top of the last two week’s horizontal channel, at 31.15, with investors awaiting the release of November’s US employment data.

The US economy is expected to have created 200,000 new jobs in the month, while the unemployment rate ticked up to 4.2%. This latter data and softer wage inflation are likely to keep hopes of December rate cuts alive.

On Thursday, the weekly jobless claims showed a larger-than-expected increase in the last week of November. This, coupled with below-consensus ADP employment figures seen on Wednesday, has cast some doubt about the NFP reading and increased pressure on the USD.

The technical picture shows the bullish momentum losing steam, with the 4-hour RSI turning down towards the 50 level and bulls capped below the mentioned $31.45. Above here, the next target is the November, 7 high, at 32.15. Supports are $30.90 and $30.45 (Dec 5 and 4 lows respectively)

XAG/USD 4-hour Chart