Silver is flat at the start of the week. In the European session, silver is trading at $16.59, up $0.07 or 0.41% on the day.
Solid Nonfarm Payrolls Boost Risk Appetite
An excellent U.S. nonfarm payrolls report on Friday triggered a sharp drop of 2.3% in silver prices. The economy added a whopping 266 thousand jobs in November, crushing the estimate of 181 thousand. As well, the 3-month average payroll number increased from 189K to 205K. Still, traders should take these rosy numbers with a grain of salt, as the recent strike at General Motors caused unusually low nonfarm payrolls readings, and the November spike was largely due to the fact that all striking GM employees were back at work. The markets, however, were focused on the strong numbers, which raised risk appetite and sent precious metals lower. Gold prices also slipped on Friday, falling by 1 percent.
Ahead – Consumer Data, Fed Rate Decision
This week will be busy on the fundamental front, and that could translate into significant movement from silver. On Wednesday, the U.S. releases CPI and the Federal Reserve releases its monthly rate decision. On Friday, we’ll get a look at retail sales.
Silver Technical Analysis
Silver has been hovering close to the 16.90 since mid-November, but broke below this line on Friday, with sharp losses. This has put support at 16.50 under strong pressure. This line has held firm since August, so it would be a significant development if this line breaks. If this occurs, the symbolic round number of 16.00 would be vulnerable. This line was last tested in early August. The 50-EMA line remains relevant and is touching the candlesticks at 16.56. As well, the 200-EMA is showing resistance at 17.21.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Silver Slides as Nonfarm Payrolls Shine
- OPEC+ Decisions Helped Oil Prices Reach Stability
- GBP/USD Price Forecast – British Pound Continues To Await Election
- Gold Price Futures (GC) Technical Analysis – Overcoming $1472.60 Could Trigger Upside Spike
- EUR/USD Mid-Session Technical Analysis for December 9, 2019
- GBP/USD Daily Forecast – Sterling Continues to Rally Leading Into UK Election