Silver remains under pressure after NFP, may extend losses

Silver traded lower on Monday to continue its bearish direction after the NFP data on Friday that pushed the dollar to more than 11 year high.  

Despite the retreat in the dollar on Monday on profit taking, still the firm dollar is making the purchase of commodities more expensive.

The dollar index, which tracks the green currency’s movements versus a basket of major currencies, rose near an 11 1/2-year high around 97.83, but faced pressure to hover around 97.60.    

U.S. nonfarm payrolls signaled 295,000 jobs were created last month from 257,000 in January, surpassing forecasts of 240,000 jobs.

Silver tracked the losses in gold, which suffered its biggest one-day drop since December 2012 on Friday, to trade around $15.77 an ounce after registering a low of $15.71.  

The metal lost 4.09 percent last week, where the breach of the support line depicted on the daily chart and the weekly closing below caused further sell off today.