Silver prices continued to recover as the dollar slipped from a six-month high. Yields on Treasuries fell, weighing on the greenback. Gold prices were also higher, helping to enhance the precious metal complex. Since the price of silver is in US dollars, a weaker US currency makes money cheaper in other currencies. Despite a stronger-than-expected ISM manufacturing report, US yields fell.
Silver prices continued to recover after surging Thursday. 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 50 day moving average at 23.74. Short-term momentum turned positive as the Rapid Stochastic generated a cross buy signal. The RSI prints a reading of 44, up from 29 which is also an oversold reading. Medium-term dynamics are flat to neutral as the MACD histogram prints in negative territory with an upward trajectory.
Manufacturing increases more than expected
The US ISM manufacturing index reached 61.1% in September against 59.9% the previous month. The index was expected to reach a reading of 59.5%. The new orders index stood at 66.7% in September. Production slipped 0.6 percentage points to 59.4%. Employment edged up 1.2% to barely sit above the growth bar of 50.2. The price index rose 1.8 percentage points to 81.2%.