Silver Price Prediction – Prices Rise Slightly But Still Contained

0

Silver prices rose but encountered resistance and failed to break out. The dollar fell, helping to support silver prices, but the higher yields were offset. US yields rose across the yield curve on the back of stronger than expected US private payroll data, the strongest since May 2021. The yield curve has now priced in an 80% chance of a rate hike by the Federal Reserve by March.

Technical analysis

On Wednesday, silver prices rallied but failed to break above resistance. Resistance is seen near the 50-day moving average at $23.36. Support is near the 10-day moving average at 22.99. The short-term momentum turned negative as the Rapid Stochastic generated a cross sell signal. The 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 trajectory that indicates higher prices.

Private employment growth jumped

ADP said private job growth rose by 807,000 for December, above expectations of 375,000. November’s total was revised down from the 534,000 originally reported. According to ADP data, the total was the best for the labor market since the May 2021 figure of 882,000. While service-related occupations led with 669,000 new hires, the goods-producing side also posted solid gains. Manufacturing increased by 74,000 and construction contributed 62,000 in total.

This article originally appeared on FX Empire

More from FXEMPIRE:


Source link

Share.

Comments are closed.