Silver retraces its yesterday’s declines, follows gold’s rally.
The silver futures contract lost 1.57% on Thursday, January 11, as it broke below the recent local lows on the Consumer Price Index release, strengthening U.S. dollar. The market went below $23 mark, and it was the lowest since mid-November. Last Friday, silver retraced some of its earlier decline after a better-than-expected monthly jobs data release, but the market remained close to $23 level. Last Wednesday, it sold off by 3.3% after a breakdown in gold price on strengthening U.S. dollar and declining stock markets. Before the Fed’s announcement on December 13, it was extending the downtrend that started on December 4 after an overnight short squeeze price action in gold price.
Today silver is trading higher and above the $23 level again, as we can see on the daily chart (the chart includes today’s intraday data):
The silver price is 2.2% higher, as it is trading along $23.20. What about the other precious metals? Gold is 1.8% higher, platinum is 0.3% higher and palladium is 0.2% higher. So the main precious metals’ prices are much higher this morning.
Yesterday’s Consumer Price Index release has been slightly higher than expected at +0.3% m/m and +3.4% y/y. Today we will get the Producer Price Index release at 8:30 a.m.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Friday, January 5
- 2:00 a.m. U.K. - GDP m/m
- 8:30 a.m. U.S. - PPI m/m, Core PPI m/m
Monday, January 15
- All Day, U.S. - Bank Holiday
- All Day - WEF Annual Meetings
Paul Rejczak
Stock Trading Strategist