Silver dips under $30 as dollar rebounds, focus on NFP

Silver (XAG/USD) declined below the psychological support of $30.00 in Tuesday’s European session. The white metal weakened from its multi-year high of $32.50 as the DXY Dollar Index saw a rebound amid uncertainty ahead of Nonfarm Payrolls data for May.

The latest NFP will provide cues about whether the Federal Reserve will start lowering key borrowing rates from current levels in the September meeting.

The DXY rebounded after falling to a multi-week low near 104.00. The appeal for dollar-denominated commodities, such as silver, weakens as a higher US Dollar makes them expensive.

Currently, the speculation for the Fed reducing interest rates in September has strengthened as recent US data has indicated signs of slowdown in the pace of America’s economic growth.

The US ISM manufacturing PMI showed that factory activity contracted for the second straight month, demand outlook is bleak and input prices expanded at a slower pace. Recently, the US Q1 Gross Domestic Product (GDP) was also revised lower to 1.3%, from the preliminary estimates of 1.6%.

In Tuesday’s session, investors will focus on the JOLTS Job Openings data for April, which will be published later in the day. US employers are estimated to have posted 8.34 million jobs, lower than the prior reading of 8.49 million.

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