Silver experienced a notable weekly downturn, marked by a 5.11% decline, closing at $24.31. The primary driver behind this shift was the latest US Non-Farm Payrolls (NFP) data. Despite a robust increase in employment with 275K jobs added, surpassing the anticipated 198K, concerns arose as Average Hourly Earnings growth slowed to 0.1% from the previous 0.5%, and the Unemployment Rate edged up to 3.9% from the expected 3.7%.
Looking forward, the upcoming week holds significant economic events that could sway silver prices. On Tuesday, March 12, investors will closely watch the Core Consumer Price Index (CPI) month-on-month, expected at 0.3%, and the overall CPI month-on-month forecasted at 0.4%. The year-over-year CPI is anticipated to remain at 3.1%. Additionally, the 10-year Bond Auction will provide insights into investor sentiment toward long-term interest rates.
Wednesday, March 13, shifts attention to the 30-year Bond Auction, where a yield of 4.36 will be scrutinized for potential indications of future interest rate directions.
Thursday, March 14, brings the Core Producer Price Index (PPI) month-on-month, expected at 0.2%, and Retail Sales month-on-month predicted to rebound to 0.8%. Unemployment Claims are forecasted to slightly increase to 218K from 217K.
The week concludes on Friday, March 15, with releases such as the Empire State Manufacturing Index anticipated at -7.6 and Preliminary University of Michigan Consumer Sentiment expected to be marginally higher at 77.3%. Preliminary University of Michigan Inflation Expectations are pegged at 3.0%.
These economic indicators and events will play a crucial role in shaping silver’s market dynamics. They offer insights into inflationary expectations, consumer sentiment, and employment trends, guiding investor strategies amidst a backdrop of economic recalibration and anticipation of monetary policy changes.
In conclusion, the current market sentiment for silver remains cautiously bearish below the $24.62 mark. A decisive move above this level could potentially alter the landscape, introducing a more bullish inclination in the silver market.
