Select Language

Silver Price Forecast: XAG/USD attracts some buyers to near $41.00 as US NFP data looms

Breaking news

Silver Price Forecast: XAG/USD attracts some buyers to near $41.00 as US NFP data looms

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.09.05 13:29
Silver Price Forecast: XAG/USD attracts some buyers to near $41.00 as US NFP data looms

update 2025.09.05 13:29

  • Silver price drifts higher to around $40.85, up 0.45% on the day. 
  • Expectations that the US Fed will cut interest rates later this month support the Silver price. 
  • Traders brace for the US August Nonfarm Payrolls report later on Friday.

The Silver price (XAG/USD) attracts some buyers near $40.85 during the Asian trading hours on Friday, bolstered by the weaker US Dollar (USD). The white metal receives support from the prospect of the US Federal Reserve (Fed) rate cut this year. Traders await the release of the highly-anticipated US August Nonfarm Payrolls (NFP) report later on Friday for fresh impetus. 

Data released on Thursday showed that the US Initial Jobless Claims increased more than expected last week. Additionally, the ADP National Employment Report revealed that US private payrolls increased less than expected in August. 

These reports indicated softening labor market conditions, reinforcing the Fed rate reduction expectation. This, in turn, weighs on the US Dollar (USD) and lifts the USD-denominated commodity price.  Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding white metal. 

Additionally, geopolitical tensions might contribute to the white metal's upside, as it is considered a safe-haven asset. The US is looking to pressure buyers of Russian crude to push Moscow into agreeing to a truce in Ukraine. US Treasury Secretary Bessent said on Tuesday that the US "will be examining sanctions on Russia very closely this week" due to the ongoing war in Ukraine.  

The US NFP report will be closely watched later on Friday. This reading could offer some hints about the US interest rate path. Economists forecast to see 75,000 job additions in August. In case of a stronger-than-expected outcome, this could boost the Greenback and drag the Silver price lower in the near term. 

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply - Silver is much more abundant than Gold - and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals - more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers' demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.


Date

Created

 : 2025.09.05

Update

Last updated

 : 2025.09.05

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

USD/CHF Price Forecast: Holds 0.7939 support, eyes 0.8000 recovery

The USD/CHF consolidates at around the 20-day Simple Moving Average (SMA) at 0.7955 down 0.05% as Wednesday's Asian Pacific session begins. The technical picture shows that the pair might bottom at around current levels, despite refreshing yearly lows in mid-September at 0.7829.
New
update2025.10.01 08:16

EUR/USD steadies as shutdown fears weigh on Dollar

EUR/USD holds firm on Tuesday during the North American session, although the Dollar weakens due to fears of a possible government shutdown that could disrupt the release of crucial jobs data for Fed officials. At the time of writing, the pair trades at 1.1735 up a modest 0.05%.
New
update2025.10.01 07:56

GBP/USD finds uneasy gains ahead of US government shutdown

GBP/USD caught a slight lift on Tuesday, creeping into the 1.3450 region and tilting into a third straight bullish session.
New
update2025.10.01 07:30

Gold advances as shutdown looms, weak US data fuels rate cut bets

Gold climbs during the North American session on Tuesday yet remains below the record high hit in the Asian session of $3,871. Amid fears of a US government shutdown, jobs data reaffirmed expectations of rate cuts by the Federal Reserve (Fed). XAU/USD trades at $3,846, up 0.35%.
New
update2025.10.01 04:29

Canadian Dollar middles as investor sentiment slows to a crawl

The Canadian Dollar (CAD) held mostly in place on Tuesday, with market flows broadly drawing down as the US government careens into a funding shutdown.
New
update2025.10.01 04:09

Fed's Collins warns that rate cuts will follow, but only if the economy meets expectations

Federal Reserve (Fed) Bank of Boston President Susan Collins warned that the Fed could have room to continue interest rate cuts, but only if economic conditions remain on-balance.
New
update2025.10.01 03:59

Fed's Goolsbee says short government shutdowns are okay

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Tuesday that "short" government shutdowns tend to have a limited impact on the broader economy. The statements come at a time when the US government is barreling into a funding gap and subsequent shutdown.
New
update2025.10.01 03:48

USD/JPY slides as US shutdown fears boost Yen's safe-haven appeal

The Japanese Yen (JPY) gains traction against the US Dollar (USD) on Tuesday, with USD/JPY extending losses for a third straight day as the looming United States (US) government shutdown weighs on the Greenback and bolsters safe-haven demand for the Yen.
New
update2025.10.01 03:36

Dow Jones Industrial Average slow bleeds as government shutdown looms

The Dow Jones Industrial Average (DJIA) saw a slow bleed on Tuesday, shedding around 150 points as investors braced ahead of what is likely to be a federal government shutdown.
New
update2025.10.01 02:46

FX Today: Focus shifts to inflation in Europe and US ADP, ISM data

Steady jitters around a potential US government shutdown kept the US Dollar under pressure on Tuesday, adding to the ongoing multi-day weakness hurting the currency. In addition, prospects for extra rate cuts by the Federal Reserve also collaborated with the bearish price action.
New
update2025.10.01 02:46

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel