Silver Price Prediction – Prices Rise Despite Higher Treasury Yields


Silver prices chained and tried to move up, but failed and fell back towards the fence. The dollar rebounded from the lows in the session that reversed the price of precious metals. Since most precious metals are valued in dollars, a stronger greenback usually results in lower silver prices. Yields were mixed, with the 2-year continuing its upward trend while the 10-year Treasury yield retreated. Stronger-than-expected Markit PMI numbers helped support the 2-year yield, which weighed on silver prices.

Technical analysis

Silver prices attempted to move up but failed and leveled off almost unchanged until the close. Support close to 10 day moving average at 23.46. Resistance is seen near September highs at 24.82. The 10-day moving average has passed the 50-day moving average, which means that a short-term uptrend is in place. Short term momentum turned negative as the Fast Stochastic generated a cross sell 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 a flattening trajectory that indicates consolidation.

PMI surveys were mixed

The initial flash of the October purchasing manager survey showed stronger business activity. Markit reported on Friday that the US composite production index rose to 57.3 from 55.0 in September, from expectations of 54.7. Higher for 3 months. Flash US Services Business Activity Index rose to 58.2 from 54.9 in September. Expectations were for a reading of 55.1. Higher for 3 months. Flash US manufacturing PMI at 59.2 against 60.7 in September. The Flash US manufacturing index at 52.3 was a 15-month low.

This article originally appeared on FX Empire

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