Silver Price Prediction – Prices Slip As Gold Plummets


Silver prices reversed lower but maintained key support as copper prices rallied, helping to support silver. Silver is also used in electrical conduction and industrial capacities but is more expensive than copper. Gold prices have fallen, creating a dark cloud for the precious metals complex. US yields rose, which appeared to put upward pressure on the dollar against the yen and downward on silver. Retail sales in the United States were stronger than expected, while confidence deteriorated.

Technical analysis

Silver prices reversed and fell, falling back to support near the 50-day moving average near 23.27. Prices have hit a high and a low, which is a sign of an uptrend. Target resistance is September high at 24.82. Short-term momentum turned negative as the Fast Stochastic generated a cross sell signal in overbought territory. 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 is printed in positive territory but the upward trajectory is decelerating, which suggests consolidation.

The feeling goes down

The preliminary estimate of the Consumer Confidence Index released by the University of Michigan fell to 71.4 in October from 72.8 in September. The reading missed the forecast which put the index at 73.0. In a separate report, retail sales for the month rose 0.7%, while sales in September are expected to decline 0.2%. Excluding auto-related sales, the number rose 0.8%, better than forecast of 0.5%.

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