Silver Prices Drop 1.4% to $712.08 on Surging US Job Numbers, Defying Market Predictions


Silver prices decline 1.4%, setting at 71208, owing to strong US economic data. The U.S. economy added an astounding 353K jobs in January, above the 180K increase that the market had predicted. And the jobless rate held steady at 3.7%, defying anticipations that it would rise to 3.8%.

Expectations for rate cuts in March were further dashed by Chair Jerome Powell’s remarks during the Federal Reserve meeting. When he said it was unlikely the committee would decide to take such action in March.

Powell’s words caused the market’s perception of the direction of future monetary policy to change. Globally, it is anticipat that in 2024, the shortfall in the silver market will decrease by 9% to 176 million troy ounces.

With silver being an essential component of many industries, including  electronics, jewellery, electric vehicles, or solar panels, a 4% recovery in mine output is expect to counteract rising demand.

Due to persistently high industrial consumption, silver is still expect to experience a structural market deficit for the fourth year in a row. Even with the anticipated cut in the deficit.

From a technical perspective, the silver market is exhibiting fresh selling, as seen by the 18.07% rise in open interest that settled at 29139. Silver is position with support at 70505. And a breach below could result in a test of the 69800 levels following the price decline of -1010 rupees. Price resistance is expect at 72165, and a move above it could drive prices as high as 73120.

The technical overview, which is characterise by a notable silver prices decline and increase open interest, highlights the bearish sentiment.