Silver Targets $65.20 as Weak US Jobs Data Shifts Fed Expectations

Key Facts

In a move reflecting the sensitivity of precious metals to labor market shifts, weak U.S. jobs data has significantly reduced expectations for Federal Reserve monetary tightening. According to reports, the economy lost 18,000 nonfarm jobs in July against Fed forecasts for gains, while the unemployment rate climbed from 4.4% to 4.6%. This 'jobs shock' has shifted market sentiment toward a more dovish Fed outlook, directly benefiting non-yielding assets like silver.

Silver prices are currently targeting the $65.21 level as markets await upcoming CPI and PPI inflation reports for further direction. Per analyst data, XAG is moving comfortably within a rising channel after breaking its previous consolidation structure, with $63.10 acting as a primary support level. These fundamental drivers are supported by Silver Institute projections of a sixth consecutive market deficit in 2026, even as total supply is expected to increase by 1.5%.

The technical outlook for silver remains bullish as long as prices hold above current support zones, with U.S. inflation data serving as the next major catalyst. Recent economic indicators, such as the ISM Manufacturing PMI which reached 55.6 on August 3, 2026, highlight a complex macroeconomic backdrop that keeps the focus on labor and inflation trends. A confirmed close above the $65.21 resistance level is expected to accelerate upward momentum toward the $67.00 mark.