The silver market continued to cool down last week. The recent economic reports from the U.S including the GDP, non-farm payroll and press release of the FOMC meeting may have contributed to the weakness in the silver market. Will the price of silver remain at its current price range of $20-$21?
During last week, the price of silver declined by 1%. Other silver assets also have done well last week: The silver ETF iShares Silver Trust (SLV) traded down by a similar rate. Silver related companies such as Silver Wheaton (SLW)and Pan American Silver (PAAS) also fell by 2.3% and 2.5%, respectively.
U.S labor market rose by a slower than expected rate
Last week’s U.S non-farm payroll report showed a 209,000 gain in number of jobs during July, which was slightly below market expectations. The ADP expected the job gain to reach 218,000 and analysts projected the figure to be close to 230,000. Even though, this gain was sizable, well above the natural population growth, and roughly close to the average growth in jobs in the past several months, the market’s reaction was a bit bearish
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