Silver Slides After US Data
01 April 2022
On Friday, the metal traded half a percent weaker, hovering near 24.65 USD as traders reacted to the latest US labor market figures.
According to a recent report, the US economy added 431,000 jobs in March, below the 490,000 expected. However, the February figure was revised upward to 750,000 from 678,000.
At the same time, the unemployment rate improved to 3.6%, down from 3.8% previously.
Finally, the yearly wage growth improved to 5.6% (against 5.5% expected), while the monthly change met estimates at 0.4%.
After the data, the CME Group FedWatch Tool shows that markets are pricing a 72.5% probability of a 50 bps hike in May, compared to 71% earlier in the day.
It looks like silver is having problems staying above the 25 USD threshold, likely leading to another leg lower. The next target for bears is expected at the 50-day average (the purple line) at 24.30 USD, followed by this week's lows and the 200-day average near 24 USD.
On the other hand, if silver jumps above 24.80 USD, it could continue higher toward 25.35 USD.