Silver prices rallied on Thursday after ending a 5-day winning streak on Wednesday. The dollar rallied but did not weigh on silver prices. Gold prices have fallen slightly but have not hampered the upward trend in silver prices. US yields were down across the curve, despite a stronger-than-expected US jobless claims report.
Silver prices rallied on Thursday but remained within a wide range. Resistance is seen near the 50 day moving average at $ 23.45. Support is near the 10 day moving average at 22.71. Short-term momentum turned positive as the Rapid Stochastic generated a cross buy signal. Medium term momentum turned positive as the MACD (Moving Average Convergence Divergence) index generated a cross buy signal. This scenario occurs 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 sloping path that indicates higher prices.
Ongoing claims return to pre-pandemic levels
On Thursday, the Labor Ministry reported that pending claims, whose data is a week behind the total number of jobless claims, fell from 140,000 to 1.72 million, the lowest level since on March 7, 2020, just before the declaration of the Covid pandemic. The drop to 1.72 million continuous complaints puts the labor market in a range consistent with the average number of continuing complaints observed in 2019.