Silver Price Recovers From Strong Jobs Report Data

The price of silver took a steep fall yesterday, and for good reason. The non-farm payroll report for he month of June was released, topping expectations and sending safe-haven demand downward. Nonetheless, we're starting to see a strong recovery in the precious metal today. Below, we'll talk about he jobs report that sent silver downward, why we're seeing gains now, and what we can expect to see from the price of silver moving forward.

Positive US Jobs Report Sends Silver Downward

As mentioned above, what sent silver spiraling downward yesterday was the fact that the US jobs report proved to be overwhelmingly positive. You see, as a safe haven investment, silver tends to do best when economic conditions are a concern. However, the strong US jobs report showed that economic conditions in the United States are starting to improve.

In the month of June, the United States added 287,000 jobs to its economy. This was an incredible improvement over analyst expectations. During the month, analysts expected that the United States would add 175,000 jobs to its economy. Not only did the number blow away expectations, it showed an even more astounding bounce back from the growth of 38,000 jobs realized in the month of May. In a statement, Jason Furman, Chairman of the White House Council of Economic Advisers had the following to offer...

“The economy added 287,000 jobs in June, a bounce-back from May's low number and a clear indication that the economy continues to make solid progress...”

With such strong data out of the United States economy, investors started to look to the market for profits, taking money out of silver and investing it elsewhere. As a result, we saw a sharp decline in the value of the precious metal yesterday.

Why We're Seeing Gains In Silver Today

While the economic news out of the United States proved to be overwhelmingly positive, there are still several concerns that are outweighing the positive news. As a result, we're watching the price of silver bounce back from recent lows today.

The reality is that while jobs growth in the US was positive in June, the big story in global economics is the UK's decision to leave the EU. With the UK making the decision to exit the EU, we're likely to see further economic hardships in two of the world's top five economies. Because of global trade, when the move is actually made, it's expected that it could lead to global economic declines.

As a result, investors are shrugging off the data out of the United States and paying attention to the bigger picture. Because the bigger picture is showing further economic struggles ahead, we're seeing gains in the demand for silver yet again. This is causing the commodity to climb in value.

What We Can Expect To See Moving Forward

If you've followed my work here or elsewhere, you know that I've maintained a bullish opinion on silver for some time now. The truth is that even with the strong data out of the United States, I continue to take a bullish approach. At the end of the day, the economic issues the world is facing are long-lasting issues. As a result, I'm expecting to see continued growth in the price of silver throughout the rest of the year.

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