Karachi, January 07, 2019 (PPI-OT): Silver
Silver markets rallied during most the week but ran into some trouble on Friday as it has the jobs figures stronger than anticipated. The $16 level of course offered a certain amount of psychological resistance, the level has been important more than once. The market is on the wrong side of the trade for the most part, speaking to several commercial speculators and hedgers. Just two weeks ago, the suggested pricing for silver going forward was closer to the $14 level. Ultimately, it had the break out and a lot of investors and commercial specs on the wrong side will continue to help the markets go to the upside. Beyond that, Jerome Powell suggested during the day on Friday that perhaps the Federal Reserve might be a bit more flexible, meaning that interest rate hikes may not be coming in 2019, or at least not as many as originally thought.
Silver prices were up 0.5 percent at $15.77 per
The rise in silver prices to a firming trend overseas as the weak dollar boosted demand for safe havens
A weak dollar means silver will appreciate as the commodity becomes cheaper in other currencies, giving rise to its demand
Silver prices will be going higher in due time because of the Fed comments
Silver prices are headed higher and are approaching bull markets
Silver futures fell in American trade, snapping the longest winning streak since June 2014 while still heading for the third weekly profit in a row, as the dollar index fell off June 2017 highs.
Silver markets went back and forth during the trading session on Friday, something that would expect due to the volatility of that figure and of course the importance of the announcement. Silver futures due in March fell 0.52% to $15.71 an ounce off six-month highs, as the dollar index shed 0.13% to 96.15 off 1-1/5 year highs.
Earlier US data showed the unemployment rate rose to 3.9% in December from 3.7% in November, which was the lowest since 1969, while analysts expected no change.
Silver prices gained 0.12 per cent to Rs 39,221 per kg in futures trade ton day as participants increased bets amid firm global trend. US average hourly earnings rose 0.4% in December, beating estimates of 0.3% and up from 0.2% in November.
The US economy added 312 thousand new jobs in December, the fastest such pace since February 2018, and beating estimates of 179K, and compared to November’s 176K, revised from 155K.
Federal Reserve Chair Jerome Powell participated in a panel discussion titled “Federal Reserve chairs: Joint Interview” at the American Economic Association’s Annual Meeting, in Atlanta, while Congress passed bills to end the partial government shutdown starting two weeks ago, in order to fund several federal agencies until February 8.