Silver rises to $31.30 ahead of US NFP data

Silver roe to near $31.30 in Friday’s European session, as XAGUSD gained ahead of the U.S. non-farm payrolls (NFP) data for December, released later in the day.

The labour market data will influence market expectations about whether the Federal Reserve will continue with its cautious stance on further policy-easing.

The NFP report is expected to show that the US economy added 160,000 workers in December, lower than 227,000 in November. The Unemployment Rate is estimated to have remained steady at 4.2%.

Investors will also pay close attention to the Average Hourly Earnings data for December.

Being a wage growth measure that drives consumer spending, this data will provide cues about the inflation outlook. Month-on-month, Average Hourly Earnings is expected to have risen at a slower pace of 0.3% from the former release of 0.4%, with annual figures growing steadily by 4%.

The Federal Open Market Committee (FOMC) minutes for the December policy meeting showed that officials were worried about a slowdown in the progress in inflation towards the Fed’s target of 2%.

Broadly, the white metal’s price has performed strongly for more than a week as market sentiment remains cautious due to uncertainty over the likely global trade war.

Investors remain cautious due to incoming protectionist policies from President-elect Donald Trump, which are expected to promote the business outlook of the US. Historically, Silver performs better in a heightened uncertain environment.

Ahead of the US NFP report, the DXY Dollar Index, which gauges greenback’s value against six major currencies, flattened around 109.15, while 10-year US Treasury yields rose to near 4.7%.