Silver price prediction – Prices consolidate as the dollar weakens

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Silver prices rose slightly but followed after trying to move up. The dollar fell and yields rose. Gold prices also edged up slightly, generating a weak price trend in the precious metals space. Treasury yields continue to rise despite a weaker-than-expected US employment report. According to the Labor Ministry, the non-farm payroll only increased by 194,000 during the month, against expectations of 500,000. Sources said the survey was carried out in the first two weeks of September, when the spread of the Delta variant peaked.

Technical analysis

Silver prices edged up as the dollar eased. Resistance is seen near the 50 day moving average at 23.49 Support is seen near the 10 year moving average at 22.45. Short-term momentum is positive as the Rapid Stochastic has recently generated a cross buy signal. Medium-term momentum turned positive as the MACD (Moving Average Convergence Divergence) index generated a cross buy signal. This happens when the MACD line (the 12 day moving average minus the 26 day moving average) crosses above the MACD signal line (the 9 day moving average of the MACD line). The MACD histogram prints in positive territory with an upward trajectory that indicates higher prices.

Falling unemployment rate in the United States

According to the US Department of Labor, the unemployment rate fell to 4.8%, better than expectations of 5.1% and the lowest since February 2020. Non-farm payrolls rose 194,000 in September from 500 000 expectations. The overall figure was affected by a decline of 123,000 government salaries, while private sector salaries rose by 317,000. Despite the low number of jobs, salaries rose sharply. The 0.6% monthly gain pushed the year-over-year increase to 4.6%, as companies used the wage increases to tackle the lingering labor shortage.


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