FXEMPIRE
All
Corona Virus
Stay Safe, FollowGuidance
World
5,614,971Confirmed
348,508Deaths
2,388,846Recovered
Fetching Location Data…
Advertisement
Advertisement

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.

Advertisement

 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

Trade With A Regulated Broker

  • Your capital is at risk