Silver Up As Economic Uncertainties Kept It From Falling Further

  • Commodities Analysis

Silver Futures yesterday settled up by 1.49% at 68271 as economic uncertainties kept it from falling further as investors awaited developments from central banks. Data from the Labor Department showed a substantial increase in U.S. employment in the month of August, although the pace of job growth continued to slow from the record spike seen in June. The data said non-farm payroll employment surged up by 1.371 million jobs in August after spiking by a downwardly revised 1.734 million jobs in July and soaring by 4.781 million jobs in June.
  
The strong job growth in August was partly due to the hiring of 238,000 temporary 2020 Census workers, which contributed to a significant increase in government employment. The unemployment rate fell to 8.4% in August from 10.2% in July. The unemployment rate continued to decline from the post-World War II record high of 13.5% in April but remains well above the 50-year low of 3.5% seen late last year.
  
For the metal to recapture its “July momentum” which delivered such highs, a new coronavirus stimulus bill might be needed. The Trump administration has haggled for weeks on the size of the bill, which rival Democrats think should be around $2 trillion versus the White House’s plans for a package that might be four times smaller.
  
Technically market is under fresh buying as market has witnessed gain in open interest by 3.41% to settled at 15318 while prices up 1005 rupees, now Silver is getting support at 67788 and below the same could see a test of 67305 levels, and resistance is now likely to be seen at 68602, a move above could see prices testing 68933.
  
Trading Ideas:
# Silver trading range for the day is 67305-68933.
# Silver prices gained as economic uncertainties kept it from falling further as investors awaited developments from central banks.
# Data from the Labor Department showed a substantial increase in U.S. employment in the month of August, although the pace of job growth continued to slow
# The data said non-farm payroll employment surged up by 1.371 million jobs in August after spiking by a downwardly revised 1.734 million jobs in July

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