The XAG/USD (silver/US dollar) pair experienced mild losses, trading just below $24. Negative figures from the US labor market, including lower-than-expected employment change and a downward revision in Q3 unit labor costs, could lead to further dovish bets on the Federal Reserve. This may push US yields down and limit the downward movements in XAG/USD. The movement of US bond yields, which are currently trending downward, may support non-yielding metals like silver.
‘ Bad manufacturing figures from China and the US last week has taken their toll on the price of Silver which is closely related to events regarding manufacturing of major economies. Big economic data like the Chinese Industrial production on the 15th of December are also likely to affect the prices of Silver depending on the actual figure that is going to be published. ’ said Antreas Themistokleous, an analyst at Exness.
On the technical point of view the price is currently testing the support area of the 50% of the daily Fibonacci retracement level as well as the latest price reaction area since mid November. The Stochastic oscillator is in the extreme oversold levels while the 50 day moving average has recently crossed above the slower 100 day moving average. Both of these are indicating that there might be a correction to the upside in the coming sessions while the Bollinger bands have started contracting showing the volatility in the market for Silver might be slowing down, therefore the correction might take some time before it happens.