Silver Ticks Closer to $18 Level

Employment numbers are in the spotlight for the remainder of the week. On Wednesday, ADP nonfarm payrolls sparkled in January. The ADP report showed that the economy gained 291 thousand jobs, blowing past the estimate of 157 thousand. The ADP report found that the increase in jobs was well-balanced throughout the economy, with solid gains in manufacturing, services. This has boosted risk appetite but traders should keep in mind that the strength of the ADP release may not be reflected in the official nonfarm payroll, which will be released on Friday. In the December release, the ADP report showed an excellent gain of 202 thousand, but the actual nonfarm payrolls report came in at just 140 thousand. Analysts are again predicting a much smaller gain than the ADP reading, with a forecast of 161 thousand.

Earlier in the day, unemployment claims fell to 202 thousand last week, down sharply from 216 thousand in the previous release. This marked the lowest level since April 2019. If the upcoming nonfarm payrolls and wage growth indicators point upwards, we could see silver prices retreat.