Silver climbs on Friday, supported by broad US Dollar weakness ahead of the US employment report.
Markets remain cautious amid renewed tensions between the US and Iran despite the ceasefire remaining in place.
Traders await the April US NFP report for fresh clues on the Federal Reserve’s monetary policy outlook.
Silver (XAG/USD) extends its bullish momentum on Friday, trading around $80.85 at the time of writing, up 3.15% on the day. The white metal benefits from renewed weakness in the US Dollar (USD), while investors remain cautious amid geopolitical tensions in the Middle East and ahead of the United States (US) Nonfarm Payrolls (NFP) release.
The US Dollar loses ground despite the latest exchange of attacks between the US and Iran near the Strait of Hormuz. Iran accused Washington of targeting Oil vessels and civilian areas, while the US reported missile and drone attacks against its naval forces. However, US President Donald Trump attempted to reassure markets on Thursday, stating that the ceasefire agreement remains intact.
The softer USD environment is supporting demand for precious metals, including Silver, as a weaker Greenback makes dollar-denominated assets more attractive for international investors.
Market participants are now focused on the US April NFP report, scheduled for release later on Friday. Economists expect the US economy to have added 62K jobs in April, significantly below the previous 178K increase recorded in March, while the Unemployment Rate is expected to remain stable at 4.3%. Investors will also closely monitor wage growth figures, as the Average Hourly Earnings indicator is projected to rise by 3.8% YoY after 3.5% previously.
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