Silver prices extended their upward momentum on Monday, climbing 4.3% to $81.32 per ounce following Friday's substantial 9% advance. The rally was primarily fueled by a softer U.S. dollar and improved market risk appetite.
Data Delays Drive Market Focus
Investor attention is fixed on a backlog of U.S. economic indicators, with the January jobs report now scheduled for February 11 and Consumer Price Index figures due February 13. These releases were postponed due to a partial federal government shutdown, creating a concentrated data calendar for the week.
Market volatility remains elevated, a condition persisting since January's record highs and last week's dramatic price swings. Silver experienced a wild trading session Friday, initially plunging 15% before reversing to close 9% higher.
Fund Flows and Technical Levels
Despite recent turbulence, investment interest remains strong. Nearly $430 million flowed into silver-focused funds over six trading sessions, with the iShares Silver Trust (SLV) ETF receiving significant allocations. Analysts note key resistance for silver around $92.24, with potential support between $70 and $90 per ounce.
The metal's direction this week will likely hinge on the upcoming economic data. Stronger-than-expected inflation or employment numbers could bolster the dollar and bond yields, typically creating headwinds for non-yielding assets like silver. Market participants currently anticipate a potential Federal Reserve rate cut by June, which has contributed to dollar weakness.
