Silver Stays Close to $18.00 Level

Silver ended the week quietly and the lack of activity has continued on Monday. In the European session, the metal is trading at $18.07, up $0.01 or 0.09% on the day.

Silver Yawns after Mixed Job Reports

U.S. employment numbers for October ended the week on a mixed note. Wage growth improved to 0.2%, up from 0.0%. However, this fell short of the forecast of 0.3%. Nonfarm payrolls slipped to 128 thousand, but this beat the forecast of 90 thousand. The exceptionally low forecast was due to a strike by GM workers, which ended last week. The strike cost GM some $2 billion in lost production, while workers lost $1 billion in lost wages. Analysts had expected the strike to take a toll on third-quarter growth, as the forecast stood at 1.6%. However, economic growth was stronger than expected, with a gain of 1.9%.

Choppy Waters Ahead for Silver?

The Federal Reserve trimmed rates for a third straight month, as the benchmark rate is currently at its lowest level since May of 2018. However, the Fed has also gone to great lengths to defend the rate cuts, saying they represent an “insurance policy” in case the economy weakens. The U.S. economy is still humming along with a growth rate of close to 2.0%, but the trade dispute with China continues to cast a dark shadow. Silver appears comfortable around the $18.00 level and could continue to see choppiness this week.

Silver Technical Analysis

Silver continues to flirt with the round number of 18.00, which has psychological significance. The 50-EMA line, which is at 17.56, continues to support silver and this is indicative of an uptrend. If silver can stay above the stubborn 18.00 line, it can set its sights on the next resistance line, which is at $18.70.