The price of silver changed direction and fell during last week. What’s up ahead for the silver market? Let’s examine the recent news that may affect silver (SLV).
The recent fall of the price of silver has reflected in the decline in demand for silver ETFs such as iShares Silver Trust. During last week, the Silver Trust’s price decreased by 3%. Silver related investments such as Silver Wheaton (SLW) also slipped by 1.2% during last week. Looking forward, the developments in the U.S dollar, gold price, and the progress of the U.S economy could be among the factors affecting the silver market. Let’s further explore these issues.
U.S labor market and precious metals
This week, the U.S non-farm payroll report will be released. This report tends to have a short term effect on the price of silver. In the previous report, only 113,000 jobs were added during January – well below the numbers anticipated. The table below presents the changes in the price of silver, USD/Yen and the rise in employment. The disappointing labor reports seem to have had a positive effect of the price of silver when the change in employment is lower than expected.
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