Silver prices are steady on Friday as the metal trades slightly below the $18.00 level. We could see stronger movement in the North American session, with the release of U.S. nonfarm payrolls and wage growth at Friday at 13:30 GMT.
Silver is trading sideways on the Friday session. Currently, silver is trading at $17.80, unchanged on the day.
U..S employment releases have sparkled so far this week. On Wednesday, ADP nonfarm payrolls indicated that the economy gained 291 thousand jobs, crushing the estimate of 157 thousand. The ADP report found that the increase in jobs was well-balanced throughout the economy, with solid gains in manufacturing, services.
The positive news was followed on Thursday, unemployment claims fell to 202 thousand, down sharply from 216 thousand in the previous release. This marked the lowest level since April 2019. Will the official nonfarm payrolls report follow suit? The forecast stands at 163 thousand, above the previous release of 145 thousand, but well below the ADP release. We’ll also get a look at wage growth, a key indicator of the strength of the labor market. The forecast for January stands at 0.3%, compared to the gain of 0.2% in December.
Silver remains volatile and is not exhibiting a clear trend. The metal often follows gold, which is a safe-haven asset that tends to move upwards when investors are concerned about the value of the U.S. dollar. Silver prices often follow the movement of gold, so a loss in risk appetite could push silver prices higher.
Silver continues to trade in a narrow range between 17.50 and 18.00. The 50-day EMA is currently situated at 17.69, just below the pair. Close by, there is support at 17.50. Below, the 200-day EMA is at 17.08, followed closely by support at the round number of 17.00. On the upside, silver continues to put pressure on resistance at the key level of 18.00. Above, we find resistance at 18.60.
Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.
