Silver Price Prediction – Price Slip Consolidating After Last Weeks Rally

The Silver edged lower despite a sliding dollar and lower yields. The market continued to focus on the Fed chair and the dovish bent Chair Powell described. He continues to believe inflation is transitory. Pending Home Sales were softer than expected as the mean housing price continued to deter futures sales.

Technical analysis

Silver prices moved lower on Monday following the surge seen on Friday. Resistance near the breakdown level at 24.42. Additional resistance is seen near the 200-day moving average at 25.85. Support is seen near the 10-day moving average at 23.61 and then near the August lows at 22.10. Prices are overbought as the fast stochastic is printing a reading of 82, above the overbought trigger level of 80 and could foreshadow a correction.  Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This buy signal occurs as 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).

Higher Home Prices Weigh on New Contracts

Futures contracts for existing homes slid in July. According to the National Association of Realtors, pending home sales to purchase previously owned homes fell 1.8% in July. The median price of an existing home was up 18% in July, according to the Realtors. Much of that was because there was far more activity on the higher end of the market, which skewed that median higher.