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Precious Metals News: Silver prices today could slip if the December jobs report comes in higher than expected.
Silver prices traded in tight range Thursday ending the day a touch higher, up $0.076, or 0.31%, at $19.61 an ounce. But the price of silver fell Wednesday after strong ADP data. The ADP report showed 238,000 jobs were added in December, above the 200,000 expected. The U.S. dollar index edged higher following the ADP report, and metals were clipped.
After a solid start this year, silver prices have since slipped.
While silver prices consolidated above the key $20 level last week and again Monday, the white metal slumped on Tuesday in tandem with gold. The white metal slipped through the crucial $20, shedding as much as $0.43 before ending the day down $0.29 to $19.80 an ounce.
The move came in sync with the $8.60 drop in gold prices amid what traders called a "downside correction" following strong gains over the first two trading days of 2014. Wary traders were also still mulling the "mini flash crash" in gold futures that occurred Monday and sent gold lower by $30 an ounce in mere seconds.
The white metal did usher in 2014 on a positive note.
Silver futures for March delivery jumped 3.9% to $20.128 an ounce on the Comex exchange on the first trading day of the New Year. The metal traded around that level over the next three trading sessions.
Additionally, short positions held by "smart money" speculators on the New York Mercantile Exchange shrunk, according to Monday's weekly commitments of traders' data from the Commodity Futures Trading. Also bullish for silver prices – net long positions grew as index rebalancing began and activity picked up following the Christmas and New Year's holidays.
Demand Should Cushion Silver Prices in 2014
Silver investors were happy to say goodbye to 2013. The white metal lost a painful 36.3% last year, its poorest annual performance since 1984.
But there are several reasons investors should buy silver in 2014, if they haven't already…