According to Kitco quotes at 23:11 MSK: bid $56.86, ask $57.11. In the morning the metal was still rising by 0.5% to $57.73 (09:33 MSK), but gave up all the gains during the US session. The day's range is $56.77-$58.10, the week's low according to FXStreet is $55.38. The $57.26 level, which had previously been considered the bearish scenario for the week, has been broken.
The reason is US inflation. On Wednesday the Bureau of Labor Statistics reported: consumer prices for September rose by 0.6% month-over-month, annual inflation accelerated to 3.7% versus 3.4% in August. More than half of the monthly increase came from gasoline - up 9.1%.
On Thursday the producer price report added to it: +1.3% month-over-month and +6.3% year-over-year - the strongest monthly increase in four and a half years. After these two reports silver was sold off, on Thursday it was partially bought back on the pullback in the dollar and yields, but on Friday sellers returned.
The futures market estimates the probability of a Fed rate hike in December at around 90% (CME FedWatch). In September the Fed already raised the rate by 25 basis points, to the 3.75-4.00% range.
For a trader the logic is simple: while rates are going up and bond yields remain high, metals with no coupon income struggle to rise - and moves in them become sharp in both directions. The nearest reference point is the Fed's decision and the data before the December meeting.
Did you see how silver put together 6%?
Weeks like this in metals happen a couple of times a year: four days in a row there is something to do intraday. The only question is how many ounces fit in your account - on a deposit of a couple thousand dollars this whole range produces a result on the level of a couple of dinners. prop trading removes exactly the notional limit: you pass the challenge and then work on the company's trading account. It is calmer to understand the mechanics now rather than in the middle of the next such squeeze.