Silver Rises to $18.00 – Will the Gains Continue?Silver continues to flirt with the $18.00 – is a breakout around the corner? The metal will likely stay calm on Thursday, but things could heat up on Friday, with the release of key U.S. employment numbers.
Silver prices have moved higher in Thursday trade. In the European session, the metal is trading at $18.01, up $0.18 or 1.00% on the day.
Federal Reserve Trims Rates
There were no surprises from the Federal Reserve, which lowered the benchmark rate by 25 basis points, putting it in a range between 1.50% and 1.75%. The rate has not been this low since May 2018. This was the third straight rate cut of one-quarter percent. Federal Reserve Chair Jerome Powell indicated that the Fed would take a pause from the cuts, saying that the “current stance of monetary policy as likely to remain appropriate.” We can expect the Fed to maintain rate levels unless economic growth is weaker than expected. The rate cut on Wednesday was considered a virtual certainty by the markets and silver prices showed a muted reaction. The rate statement was positive in tone, as policymakers noted that the labor market “remains strong” and that the economic growth was “rising at a moderate rate”.
Ahead – Employment Reports
Investors will be glued to key employment data, which will be released on Friday. Wage growth is projected to grow by 0.3% in October, after a disappointing 0.0% reading in September. However, nonfarm payrolls are forecast to slip to just 90 thousand, an unusually low reading. Weak job numbers could push silver prices upwards.