Silver is on the eve of a major correction.
Technically and fundamentally, the US dollar may find support at this point.
The price of silver is lower in the open this week, indicating that profit-taking following Friday’s Nonfarm Payrolls event has subsided.
Spot XAG/USD was ending the day at $26.46 at the close of business on Friday.
Throughout the day and sessions, the price of XAG/USD fluctuated between a low of $25.98 and a high of $26.56, indicating a persistent upward trend.
Today in Asia, the price is down 0.13 percent, moving from a high of $26.47 to a low of $26.42.
The dollar had been supported up until the NFP, but the fact was sold on the headline, and the lack of wage inflation was used as an opportunity to profit ahead of the long weekend.
Last month, a measure of wage inflation increased by 0.3 percent, slightly less than the average prediction of 0.4 percent.
The NFP number was not strong enough to shake markets or put pressure on precious metals, but the greenback could be on the cusp of an upside extension from both a technical and fundamental aspect.
Technically, the test of 26.50 re-establishes the bulls’ control and raises the possibility of a drop to the mid-May lows of 26.70.
However, a reversal may be in order first:/n
