Silver prices have posted slight gains on Wednesday. In the European session, the metal is trading at $17.25, up $0.06, or 0.33% on the day.
Silver Flirts with 17.00, Job Reports Ahead
Silver continues to be marked by volatility. After losing ground last week, silver declined another 3.0% on Monday. The metal broke below the symbolic 17.00 level for the first time since late August. Silver has clawed back above 17.00 and has paused on Wednesday. Investors have been treating silver as a safe-haven asset, but the metal slipped badly on Monday, despite a weak Chicago PMI which slowed to 47.1, down from 50.4 a month earlier. Traders should be prepared for some movement in silver prices in response to upcoming employment releases. The ADP non-farm payroll report, which precedes the official NFP report, is projected to drop sharply to 140 thousand, compared to 195 thousand in the most recent report. We’ll get a look at unemployment claims on Thursday, followed by wage growth and nonfarm payrolls on Friday. Wage growth is expected to dip from 0.4% to 0.3%, while nonfarm payrolls are expected to rise to 140 thousand, up from 130 thousand in the previous release. If the latest batch of job numbers is generally positive, investor risk appetite could improve and weigh on safe-haven assets such as silver. Conversely, weak employment numbers could see investors snap up silver.
Silver Technical Analysis
This week’s significant volatility has put the focus on the 16.90 line. Silver tested this line in support on Tuesday and it is currently an immediate support line. If silver breaks below this line, it could continue the downward movement towards support at 16.10. This line has held since the first week of August. Above, there is resistance at 17.50, which was active at the end of last week. This is followed by resistance at the round number of 18.00.
This article was originally posted on FX Empire