Silver Prices: XAG/USD plunges to near $28 ahead of busy US data week

NEW YORK (August 3) Silver price (XAG/USD) extends its losing spree for the third trading session on Tuesday. The white metal declines to near $28.20 as the US Dollar (USD) rises further amid uncertainty ahead of a slew of economic data this week.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises toward fresh two-week high of 102.00.

Investors keenly await the US Nonfarm Payrolls (NFP) data for August, releasing on Friday, as it will influence market speculation for the likely size of interest rate cut by the Federal Reserve (Fed) in the September meeting.

The Fed is widely anticipated to start reducing interest rates this week but traders are divided on whether the central bank will kick-off the policy-easing cycle gradually or aggressively. Apart from the US NFP report, investors will also focus on the JOLTS Job Openings data for July and the ADP Employment Change data for August, which will be published on Wednesday and Thursday, respectively, that will provide fresh cues on current labor market status.

In today’s North American session, investors will focus on the US ISM Manufacturing PMI data for August, which will be published at 14:00 GMT. The US Manufacturing PMI is estimated to have improved to 47.5 from July’s reading of 46.8 but a figure below 50.0 is itself considered as contraction.

FXStreet