Silver Sinks Following Drop in US Jobless Claims

iNVEZZ.com reported that silver dropped further on Friday after experiencing its worst trading day since 2013. Investors are concerned about the impending rise in US interest rates.

As quoted in the market news:

Silver for immediate delivery had shed eight cents, or 0.48 percent, to $16.83 as of 06:38 GMT, and was trading 1.2 percent above its 50-day simple moving average of $16.62. Yesterday, the precious metal tumbled 5.8 percent, the most since September 2013, following a sharp decrease in US jobless claims.

Data from the Department of Labor showed the number of US workers making first-time claims for unemployment benefits fell to 265,000 in the week ended 24 January from a revised 308,000 a week earlier. The report was seen as a bullish sign for the Federal Reserve’s commitment on tightening monetary policy later in the year.

On Wednesday the Federal Reserve reiterated that the central bank can remain ‘patient’ in tightening the monetary policy but officials were upbeat about the economy, noting ‘solid’ growth and ‘strong job gains.’

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