XAGUSD Analysis: Precious metal prices may be affected by strength of dollar

By IFCMarkets

Precious metal prices may be affected by the possible strengthening of the dollar

As a rule, the value of precious metals moves in the opposite direction to the dollar index. Investors regard them as an alternative to the American currency. In May, the number of new jobs in the US non-agricultural sector (Non Farm Payrolls) increased unexpectedly by 2.5 million. This is much better than the forecast of job cuts by 8 million, and also better than the April figure (-20.7 million). Good labor-market performance may indicate a recovery of the US economy hit by the coronavirus pandemic.

Summary of technical analysis

Market Analysis provided by IFCMarkets