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.