Silver Steady Ahead of ADP Nonfarm Payrolls

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Updated: Feb 5, 2020, 12:20 GMT+00:00

After shedding 2 percent at the start of the week, silver has steadied. Key employment releases kick off with ADP nonfarm payrolls, which will be released at 13:15 GMT.

Silver Steady Ahead of ADP Nonfarm Payrolls

Silver is trading quietly in Wednesday trade. Currently, silver is trading at $17.55, down $0.03 or 0.19% on the day.

Investors Eye ADP Payrolls, Services PMI

The U.S. will release some key indicators on Wednesday, which could impact on silver prices. This week’s key employment releases kick off later on Wednesday, with the release of ADP nonfarm payrolls. The indicator sparkled in December, with a reading of 202 thousand, crushing the forecast of 160 thousand. The estimate for January stands at 157 thousand. However, traders should keep in mind that the official nonfarm payrolls reading in December was much lower than the ADP figure, at 145 thousand. The focus will be on employment numbers for the rest of the week. We’ll get a look at unemployment claims on Thursday, followed by wage growth and nonfarm payrolls on Friday.

We’ll also get a look at ISM Non-Manufacturing PMI, which is showing expansion. The PMI improved to 55.0 in December, marking a 3-month high. The estimate for January is 55.1 points. The services sector continues to outshine manufacturing, which has been hit hard by the U.S.-China trade war and weak global demand.

Silver Technical Analysis

Silver currently finds itself sandwiched between resistance and support barriers, which could mean that there is more choppy trading ahead. Silver continues to dart back-and-forth around the 50-day EMA, which is currently situated at 17.65, just above the pair. This is followed by the 18.00 level, which has proven to be a resilient resistance line. The line was tested late last week but silver was unable to consolidate and has dropped below this key level. Above, we have resistance at 18.60. On the downside, there is support at the round number of 17.00. This is immediately followed by the 200-day EMA at 16.95.

About the Author

Kenny Fisherauthor

Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.

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