Silver Price Prediction – Prices Slip as Yields Rise


key ideas

  • Silver prices fell on Thursday.

  • Treasury yields appear to be popping.

  • Gold prices fell as the dollar rallied.

Silver prices fell along with most precious metal complexes. Yields on US Treasuries continued to rebound, despite a higher-than-expected increase in jobless claims. On Friday, the Department of Labor will release its report on the CPI. A number much stronger than expected will spook the market.

Initial jobless claims totaled 229,000, an increase of 27,000 from the upwardly revised level, more than the 210,000 expected. The last time initial claims were this high was in January. 15. Continuing claims remained unchanged at just over 1.3 million, below estimates of 1.35 million. The four-week rolling average of continuing claims fell slightly to 1.32 million, the lowest level since January 10, 1970.

Technical analysis

Silver prices have fallen, sliding through support which is now resistance near the 10-day moving average of 21.98. Support is seen near the June lows at 21.43.

The recent 50-day period has broken below the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.

The short-term momentum turned negative as the Rapid Stochastic generated a cross sell signal.

The medium-term momentum turns positive when the histogram prints positively with the MACD (Moving Average Convergence Divergence). The trajectory of the MACD histogram is in negative which reflects the consolidation.

This article originally appeared on FX Empire

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