Silver price forecast: XAG/USD eases toward $80 as traders take profits ahead of US data

Silver prices (XAG/USD) drifted lower during the Asian session on Wednesday, with the white metal trading near $80.15 as market participants booked profits ahead of a busy US economic calendar. Traders are bracing for the US ISM Services Purchasing Managers’ Index (PMI) due later today, while all attention will be on the US jobs data on Friday, which could give clearer signals on the Federal Reserve’s future policy path.

Traders lock in gains as key releases loom

Profit-taking around the recent strength in precious metals has pressured silver modestly, with traders reluctant to add new positions amid uncertainty.

The upcoming economic releases in the US, particularly the Nonfarm Payrolls (NFP) report, are expected to influence expectations for the Fed’s interest rate decisions and could act as a catalyst for renewed volatility in both the US Dollar and silver prices.

Despite the pullback, downside risks for silver remain somewhat contained as markets continue to price in expectations of future US interest rate cuts. According to the CME Group’s FedWatch tool, Fed funds futures still reflect a high probability that rates will be kept on hold at the next Fed meeting on January 27–28, which typically supports non‑yielding assets like silver.

“Safe-haven demand and rising bets on Federal Reserve rate cuts are underpinning the market,” says Ricardo Evangelista, analyst at ActivTrades, highlighting that geopolitical tensions and dovish monetary expectations continue to buoy demand for precious metals.

Geopolitical backdrop and jobs data in focus

Silver’s near-term trajectory will also be shaped by macro and geopolitical developments. Recent geopolitical shocks, including heightened tensions following the US military operation in Venezuela and the capture of President Nicolás Maduro, have lent support to safe-haven assets. However, traders remain wary of potential dollar strength ahead of the critical US labor data later this week.

Looking ahead, the US December jobs report is forecast to show a gain of 55,000 jobs, with the unemployment rate expected to edge lower. A stronger‑than‑expected outcome could bolster the US Dollar, potentially weighing on silver’s USD‑denominated price in the near term.

With markets positioned cautiously ahead of major data releases, silver’s corrective move near $80 may persist, but broader support from dovish rate expectations and safe‑haven demand could limit further declines and set the stage for renewed upside once key US data are out.