Silver Slides as Nonfarm Payrolls ShineSilver has steadied on Monday, after sustaining sharp losses at the end of last week following a strong nonfarm payrolls report. Investors are looking ahead to U.S. inflation data and the Federal Reserve rate decision.
Silver is flat at the start of the week. In the European session, silver is trading at $16.59, up $0.07 or 0.41% on the day.
Solid Nonfarm Payrolls Boost Risk Appetite
An excellent U.S. nonfarm payrolls report on Friday triggered a sharp drop of 2.3% in silver prices. The economy added a whopping 266 thousand jobs in November, crushing the estimate of 181 thousand. As well, the 3-month average payroll number increased from 189K to 205K. Still, traders should take these rosy numbers with a grain of salt, as the recent strike at General Motors caused unusually low nonfarm payrolls readings, and the November spike was largely due to the fact that all striking GM employees were back at work. The markets, however, were focused on the strong numbers, which raised risk appetite and sent precious metals lower. Gold prices also slipped on Friday, falling by 1 percent.
Ahead – Consumer Data, Fed Rate Decision
This week will be busy on the fundamental front, and that could translate into significant movement from silver. On Wednesday, the U.S. releases CPI and the Federal Reserve releases its monthly rate decision. On Friday, we’ll get a look at retail sales.