The recovery of the price of silver slowed down in the past week; it finished the week above the $21 mark – silver’s highest level since mid-March. But the upcoming non-farm payroll report could change the course of this precious metal. Let’s see why.
During the previous week, silver inched up by 0.75%. Further, other silver related assets also increased last week: Silver Wheaton (SLW), iShares Silver Trust (SLV), Pan American Silver (PAAS) rallied by 4.1%, 0.6% and 2%, respectively.
U.S labor market and silver
This week the U.S non-farm payroll report will be released. In the previous report, 217,000 jobs were added during May, which was inline with the market expectations. The table below shows the changes in the price of silver, USD/Yen and the rise in number of jobs.
In the past, the rise in number of jobs tended to lead to an appreciation of the USD and a drop in bullion prices. Moreover, in the past, precious metals and change in number of added jobs had a strong correlation (under certain assumptions).
For the rest of the report you can see it at Seeking Alpha
.For more:
- Gold and Silver Forecast for June 30-July 4
- 3 Reasons to Prefer Silver Wheaton Corp over Silver ETFs
- Will This Silver Company Rally?