Silver Tests 200-Day EMA as Strong US Jobs Data Lifts Yields

Silver Technical Analysis

The silver market has fallen pretty significantly during the trading session on Friday as the jobs number came out well over anticipated results. The expected number was right around 55,000 jobs added last month in America, ended up being 162,000, a huge miss, and to the upside. So that has traders worried about the potential of inflation, higher interest rates coming out of the Federal Reserve, and that typically is bad for silver. That explains part of what we’re seeing here.

Moving Average Support and Labor Day Volatility

Ultimately though, it’s a market that is still well within the range of normalcy right around the 200-day EMA, as well as the 50-day EMA. So, as poor as the reaction was initially, at least so far, it doesn’t seem to be irreversible damage.

Friday is Labor Day in the United States, so keep in mind futures markets close right around 1:00 p.m. or maybe noon, depending on where you’re at in the US. The markets will probably have a lack of volume. I think we’ll start to get real price action late Monday night in America as Asian traders wake up and US junior traders start to take on the desks. Ultimately, by the end of Tuesday, we should have the actual response to this.

But so far, higher interest rates are bad for silver, as we would expect. If rates come back down, that could change some things as well. But all in all, it has held up fairly well considering what it could have been.

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