Silver Keeps Head Above $18.00, Investors Await Job Reports

Silver prices are steady on Friday, after considerable gains in Thursday trade. In the European session, the metal is trading at $18.11, up $0.02 or 0.11% on the day.

Silver Smiles as Trade Talks Stall

Silver prices posted solid gains on Thursday, climbing 1.2 percent. The catalyst for the gains was a report that the U.S.-China trade talks are showing little sign of progress. There had been renewed optimism that the current round of talks might yield a breakthrough, as negotiators are focusing on reaching a limited deal, leaving the most intractable issues for another time. Investor risk appetite has decreased, which has boosted safe-haven assets such as gold and silver.

Next – U.S. Employment Reports

Traders should be prepared for possible volatility from silver in the North American session, with the release of key employment numbers. 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. This is an unusually low reading, which is being attributed to the strike at General Motors. The strike has lasted over a month and could cost the automaker some $3 billion in losses. If the crisis continues, nervous investors could push up the prices of safe-haven assets, which would be good news for silver.

Silver Technical Analysis

Silver continues to flirt with the round number of 18.00, which has psychological significance. A notable development is that the metal closed above 18.00 on Thursday, for the first time since September 25. The 50-EMA line, which is at 17.66 continues to support silver and this is indicative of an uptrend. If silver can stay above the stubborn 18.00 line, it can set its sights on the next resistance line, which is at $18.70.