Big Test For Silver Prices As All Eyes Turn U.S Jobs Data – Whats Next？

Silver has been on an impressive run throughout the past month, with the precious metal crossing the finishing line for May – up over 8.5% to score its biggest monthly gain since December.

Silver prices rallied from just below $24 an ounce at the end of March to close above $28.50 by the end of May. Thats a stunning gain of almost 19% in the space of two-months.

Earlier this week, Silver prices corrected on routine profit taking after ADP Employment Data showed that private-sector hiring rose by 978K, beating the consensus of 645K and also exceeding the 654K jobs added in April.

Furthermore, Initial Jobless Claims fell below 400K for the first time since the Covid-19 pandemic struck in March 2020, with first-time jobless benefit claims falling from 405K to 385K.

So far this year, Federal Reserve officials have remained adamant that improvements in the labour market will be a key factor they will consider when deciding on tapering their quantitative easing program, as well as raising interest rates.

The buoyant figures could put the Fed under pressure to start talking about tapering, especially if Fridays Non-Farm Payrolls data goes in the same direction as the ADP Employment Report.