Precious metals traded quietly on Thursday as all markets awaited today’s Non – Farm Payroll report. Economic consensus of 235K new jobs being created in November was badly missed, as employers created a very impressive 321K new jobs last month. Precious metals immediately moved lower as the USD ticked up on expectations the FOMC will explore raising interest rates sooner than expected in 2015.
For the moment, gold has bounced off support in the mid-$1,180.00s as impressive physical demand has been seen, but silver continues to trade just above the intra-day low of $16.22 with silver feeling a bit vulnerable at the moment to further losses. As silver has led the roller coaster ride this week, I would look for it to be the directional leader for the remainder of the trading day. A dip below $16.10 could empower short sellers at the same time as longs look to exit the market and this could result in a quick move into the $15.70 – $15.50 range. On the flip side, a weekly close above $16.00 will be viewed as a positive sign by the momentum traders and could signal another test of $16.80 early next week.
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