Silver trades lower following a breakdown in gold’s price.
The silver futures contract gained 0.55% on Friday, January 5, as it retraced some of its Wednesday’s sell-off of 3.3% following a better-than-expected monthly jobs data release. On Wednesday it sold off after a breakdown in gold price on strengthening U.S. dollar and declining stock markets. Recently, it was trading sideways following the December 13 FOMC Statement release and a rally of over 6%, and on Friday it retraced more of that advance after breaking below $24 level.
Before the Fed’s announcement, it was extending the downtrend that started on December 4 after an overnight short squeeze price action in gold price.
Today silver is trading closer to the recent lows, as we can see on the daily chart (the chart includes today’s intraday data):
The silver price is 1.0% lower, as it is trading closer to the $23 level. What about the other precious metals? Gold is 1.1% lower, platinum is 1.1% lower and palladium is 1.2% lower. So the main precious metals’ prices are lower this morning.
Friday’s Nonfarm Payrolls release has been higher than expected at +216,000. Today, we will get the Consumer Credit release at 3:00 a.m. The markets will be waiting for the important Consumer Price Index release on Thursday.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, January 8
- 3:00 p.m. U.S. - Consumer Credit m/m
Tuesday, January 9
- 6:00 a.m. U.S. - NFIB Small Business Index
- 8:30 a.m. U.S. - Trade Balance
- 12:00 p.m. U.S. - FOMC Member Barr Speech
- 7:30 p.m. Australia - CPI y/y
- Tentative, U.S. - RCM/TIPP Economic Optimism
Paul Rejczak
Stock Trading Strategist