Silver is trading quietly on Monday. Investors are keeping an eye on Federal Reserve Chair Jerome Powell, who will testify on Capitol Hill on Tuesday and Wednesday.
Silver has started the trading week with small gains. Currently, silver is trading at $17.78, up 0.40% the day.
The U.S. wrapped up the week with mixed employment data. The official nonfarm payrolls report followed in the footsteps of an outstanding ADP nonfarm payrolls earlier in the week and jumped to 225 thousand in January. This was up from 145 thousand in December and easily surpassed the estimate of 163 thousand. Wage growth ticked higher to 0.2%, up from 0.1% in the previous release. Still, this missed the forecast of 0.3%. Silver showed little reaction to the mixed numbers.
Federal Reserve Chair Jerome Powell will testify before Congress on Tuesday and Wednesday, and investors will be listening carefully. Any hints about a change in monetary policy could move the markets. The Fed has been cautious, with Powell and other policymakers adopting a ‘wait-and-see’ attitude before trimming rates. However, the coronavirus outbreak has caused turmoil in the financial markets and the damage to the global economy is likely to be significant. With no end in sight to the outbreak, the Fed may consider lowering rates if it feels that global risks will worsen before we see an improvement.
Silver continues to trade in a narrow range between 17.50 and 18.00. The 50-day EMA is currently situated at 17.68, just below the pair. Close by, there is support at 17.50. Below, the 200-day EMA is at 17.08, followed closely by support at the round number of 17.00. On the upside, silver continues to put pressure on resistance at the key level of 18.00. Above, we find resistance at 18.60.
Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.
