Silver Markets Get Hammered by Strong Jobs Report

Silver markets have gotten clobbered during the trading session on Friday, after initially starting on the right foot. As interest rates in America continue to rise, with the 10 year yield spiking, this makes commodities such as silver a lot less attractive. Quite frankly, the silver markets are highly influenced by the US dollar, and as the interest rates in America started to spike, this drove the value of the US dollar higher. Whether or not that sticks is a completely different question, but quite frankly traders are now starting to have whisper numbers of 50 basis points for the next rate hike due to the fact that the jobs number came in at 425,000 for the month of January, as opposed to some thinking that would be negative.

SILVER Video 07.02.22

With this being the case, the $22 level most certainly comes back into focus, as it is a major support level and an area where a lot of people will be paying close attention to the markets. It extends down to the $21.50 region, so simply piercing the $22 will be enough. With this being said, it is very likely that we will continue to see a lot of support, but it clearly looks as if silver will probably have to build a bit of a base in order to turn things around. Ultimately, I do think that this is a market that will put up a big fight down there, but we may finally see enough hawkish behavior coming out of the Federal Reserve and expectations of it to send silver much lower. If we break down below $21.50, it is very likely that we go looking towards the $20 level after that.

For a look at all of today’s economic events, check out our economic calendar.