Silver prices slid as expected and it would be fair to expect the price to reach last week’s low of $14.63 as long as price is being capped by the January 25 high of $15.34. On a breach to the $14.63 low, silver may reach the February 2 low of $14.23 and for the trend to turn bullish, price may need to overtake the January 25 high of $15.34.

A move lower is also supported by the stronger US Dollar index (FXCM: USDOLLAR), which has gained over the last two weeks as the markets begin to reevaluate the outlook for further Fed rate hikes. Traders are now pricing in 38bps in rate hikes over the next 12 months, up by 16bps less than two weeks ago.

U.S. ADP is on tap and a Bloomberg news poll projects the creation of 190 000 jobs from 200 000 in January. A better than expected reading may keep silver under pressure as it would boost risk-appetite and the US Dollar, while a softer reading may boost silver.

The weekly DOE/EIA crude oil inventories report is expected to show a build of 3.4m barrels (Bloomberg news projection), and traders will see how crude oil reacts given that it may affect risk-appetite.

For further data reports, which could prove to be influential on silver prices, please see our economic calendar.

Silver Prices | FXCM: XAG/USD

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano