Last Updated on September 4, 2026 by Deon
Silver Price Struggles to Extend Gains
Silver price remains under pressure near $66.25 while traders wait for the US Nonfarm Payrolls report. XAG/USD recovered last session but has not built enough momentum to keep climbing higher.
The upcoming US employment data is now the focus for precious metals traders. The NFP report could change expectations for Federal Reserve policy. Bring new volatility to Silver price.
When I analyzed the market XAG/USD traded near $66.00. Stayed above its 20-day EMA of about $65.51. This shows that the short-term trend is still somewhat positive. Buyers face a key resistance level near $66.25.
US NFP Data Takes Center Stage
The US Nonfarm Payrolls report is one of the closely watched economic indicators in the financial markets. A jobs report that is stronger than expected could raise concerns that inflation will stay high and could support expectations for Federal Reserve policy.
According to the analysis from FXStreet August employment data is expected to rebound after a month before. The unemployment rate is also expected to stay fairly stable. However the real numbers could differ a lot from what markets expect which could create volatility in the US Dollar Treasury yields, Gold and Silver.
For Silver traders how the US Dollar reacts is especially important. Because Silver is priced in US Dollars a stronger dollar can make Silver more expensive for buyers using currencies, which may limit demand. A weaker Dollar on the hand can support XAG/USD.
Federal Reserve Expectations Remain Important
Federal Reserve interest rate expectations still play a role in the silver price outlook. Markets have been looking at the possibility of another rate increase at the policy meeting.
Higher interest rates can make it harder for -yielding assets like Silver. When rates and bond yields rise investors may prefer assets that give interest or income. Therefore expectations for monetary policy can limit upside momentum in precious metals.
However a jobs report that is weaker than expected could change market expectations. If employment data shows that the US economy is slowing traders may rethink the outlook for interest rate decisions. This reaction could pressure the US Dollar. Potentially support Silver prices.
Higher Oil Prices Could Pressure Silver
Another factor that affects Silver is the recent rise in oil prices. Higher energy costs can add to inflation expectations especially when supply worries hit energy markets.
According to FXStreet analysis, restrictions that affect energy shipments through the Strait of Hormuz have raised concerns about oil prices. Because the route is key for energy supplies disruptions can create uncertainty in commodity markets.
Rising oil prices can heighten inflation concerns. May encourage central banks to keep policy tight. This scenario can be challenging for Silver because higher interest rate expectations can lower the appeal of -yielding precious metals.
Therefore traders will keep watching the energy market and central bank expectations when evaluating the major move in XAG/USD.
Silver Technical Analysis
From a view Silver price is trying to hold onto its recent recovery. XAG/USD trades near $66.00. Stays above the 20-day EMA of about $65.51.
Remaining above this moving average keeps the near-term outlook positive. If buyers can hold this support level Silver could try to move above the $66.25 resistance area.
The Relative Strength Index (RSI) sits in territory but shows a slight positive bias. This means that buying momentum is still there though the market is not showing strong bullish conditions.
Key Silver Support Levels
The first key support level is near the 20-day EMA at $65.51. A sustained drop below this level could weaken the term “bullish outlook” and raise the chance of more downside.
Traders may also watch price zones for extra support if selling pressure rises.
Key Silver Resistance Levels
On the upside $66.25 stays a resistance area. A clear break above this level could boost momentum and bring more buyers in.
Beyond the near-term resistance the August high near $71 remains a barrier. Moving toward this area would need buying pressure and possibly supportive fundamentals, such as a weaker US Dollar or changing expectations for Federal Reserve policy.
Silver Price Outlook Ahead
The short-term outlook for Silver will likely depend a lot on the US NFP data. Traders should get ready for volatility as employment figures could affect expectations for interest rates and the direction of the US Dollar.
A strong jobs report may support the Dollar. Reinforce expectations for tighter monetary policy, which could limit gains in XAG/USD. On the hand weaker employment data could pressure the Dollar and give fresh support to Silver.
For now, the silver price stays between support near the 20-day EMA and resistance near $66.25. A decisive breakout in either direction could give the major trading signal.
Silver price is struggling to extend its recovery above $66.25 while traders wait for the US Nonfarm Payrolls report. The NFP data, Federal Reserve expectations, US Dollar movement and higher oil prices will likely keep being the drivers of XAG/USD in the coming sessions.
Technically Silver stays above the 20-day EMA near $65.51 keeping the short-term outlook positive. However buyers need a break above $66.25 to strengthen bullish momentum while the August high, near $71 stays a major upside target.
As the NFP release gets closer traders should expect price movements and closely watch both economic data and changing interest rate expectations.
