Silver finds support, yet trades near five-week low

Silver finds support, yet trades near five-week lowSilver found some ground on Monday to halt its losses after Friday’s non-farm payrolls showed U.S. employers created more than forecast jobs last month, yet the metal still trades near five-week low.

The precious metal plunged to trade around $16.03 an ounce, yet the price found support at the session’s low at $15.96.

The U.S. economy added 280,000 jobs in May, overshooting analysts’ forecast of 225,000, the non-farm payrolls report showed.

The upbeat figures raised speculations the Fed may raise its borrowing cost earlier than anticipated, putting pressure on silver and other precious metals since they do not provide any interest to their holders.

The U.S. dollar retreated on Monday to hover around 96.07, after hitting a peak of 96.94 on Friday, according to the dollar index.

President Barack Obama told leaders of the Group of Seven that the dollar’s strength is a problem, according to a French official with knowledge of the talks.

This week, investors will watch U.S. data, led by retail sales and consumer sentiment reports, to get further clues about the timing of the Fed’s interest rate hike decision.

Silver recovered some of its losses as it found support depicted on the daily chart, where it gained support from the Bollinger Bands bottom line located at the same levels.

The Stochastic Oscillator momentum indicator refers that the metal is oversold and may undertake a turnaround.

Among other precious metals, gold inched up to trade around $1172.95, platinum slipped to $1094.82 and palladium resumed its fall to hover around $$745.45.

Silver finds support

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

You have to be logged in to comment.