Payrolls Data

Silver is easing after touching its highest level since July 6, with the failed move above the 50 day moving average raising concerns that the rally may have trapped late buyers. Traders are watching Friday payrolls data for clues on the dollar, rate expectations and whether support can hold.

Gold is holding near a seven-week high after a sharp rally fueled by a weaker US dollar, lower yields and fading energy inflation pressure. Friday’s payrolls data now stands as the key test for whether the breakout can extend or stall.

Gold is trading slightly higher in a narrow range as lower crude prices ease near-term inflation concerns. The next major test for XAU/USD is Friday’s payrolls data, which could determine whether buyers challenge resistance or sellers regain control.