Silver Price Prediction – Prices recover as the dollar weakens

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Silver prices rebounded as the dollar initially slipped from a six-month high. Yields on Treasuries were mixed, but the increasing interest rate differential in favor of the greenback over the past two weeks has put pressure on silver prices. Gold prices were also higher, helping to enhance the precious metal complex. Since money is valued in US dollars, a stronger US currency makes money more expensive in other currencies.

Technical analysis

Silver prices surged higher on Thursday, rebounding after closing on horizontal trend support and preparing to test lower levels. Target support is June 2020 low at 16.25. Short term support on silver prices is seen near the recent breakdown level at 22.10. Resistance is seen near the 10 day moving average at 22.36. Short-term momentum turned positive as the Rapid Stochastic generated a cross buy signal. The RSI prints a reading of 38, up from 29 which is also an oversold reading. Medium-term momentum remains negative as the MACD (Moving Average Convergence Divergence) histogram prints in negative territory with a downward trajectory indicating lower prices.

Mortgage applications have plummeted

After the gains of the previous week, the total volume of mortgage applications fell 1.1% last week from the previous week, according to the Mortgage Bankers Association index. The average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances of up to $ 548,250 has increased from 3.03% to 3.10%.


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