Silver dropped as traders digest fresh economic data

yesterday settled down by -0.6% at 72522 as the yield on the US 10-year Treasury note continued to rise to 4.14% in August, a level not seen since the beginning of November, as traders digested fresh economic data. Initial claims edged only slightly higher as expected, job cuts were the lowest in nearly a year and both labour costs and productivity beat forecasts, in a sign the labour market remains robust.

The ADP (NASDAQ:) data also pointed to a strong private-sector employment gain. The payrolls report due Friday will now be keenly watched for further updates on the jobs market. The data continues to prove the US’s resilience to higher interest rates, spurring some bets of another rate hike this year. Meanwhile, the Treasury Department announced on Wednesday it plans to gradually increase the size of its auctions and will issue $103 billion of securities next week, slightly more than forecast. Nonfarm business sector labour productivity in the US increased 3.7 per cent in the second quarter of 2023, rebounding from a downwardly revised 1.2 per cent fall in the previous quarter and compared to forecasts of 2%, preliminary estimates showed.

Technically market is under fresh selling as the market has witnessed a gain in open interest by 2.31% to settle at 15829 while prices are down -438 rupees, now Silver is getting support at 72056 and below same could see a test of 71590 levels, and resistance is now likely to be seen at 72900, a move above could see prices testing 73278.