FXEMPIRE
All

Silver Slides as Nonfarm Payrolls Shine

Silver 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.
Kenny Fisher
Silver daily chart, December 02, 2019

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.

Silver Technical Analysis

Silver has been hovering close to the 16.90 since mid-November, but broke below this line on Friday, with sharp losses. This has put support at 16.50 under strong pressure. This line has held firm since August, so it would be a significant development if this line breaks. If this occurs, the symbolic round number of 16.00 would be vulnerable. This line was last tested in early August. The 50-EMA line remains relevant and is touching the candlesticks at 16.56. As well, the 200-EMA is showing resistance at 17.21.

XAG/USD 1-Day Chart
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US