Silver (XAG/USD) prices rose near $31.30 during the European session on Friday. The white metal strengthened ahead of the United States (US) Nonfarm Payroll (NFP) data for December, due to be released at 13:30 GMT. The labor market data will influence market expectations on whether the Federal Reserve (Fed) will continue its cautious stance on further policy easing.
The NFP report is expected to show that the US economy added 160,000 new jobs in December, down from 227,000 in November. The Unemployment Rate is expected to remain steady at 4.2%.
Investors will also be watching the Average Hourly Earnings data for December.
As a measure of wage growth that drives consumer spending, the Average Hourly Earnings data will provide clues on the inflation outlook. Average Hourly Earnings are expected to increase at a slower pace of 0.3% from the previous release of 0.4%, with the annualized figure growing steadily at 4%.
The minutes of the Federal Open Market Committee (FOMC) for its December policy meeting showed that officials were concerned about a slowdown in inflation progress toward the Fed's 2% target.
Source: FXStreet
