Silver Price Prediction – Prices Close Higher as the Dollar Eases

Silver prices rallied and remained buoyed, closing with a doji day at the highs of the trading session. This came despite a selloff in gold prices. Durable goods orders declined less than expected and new orders ex-transportation were unchanged. The dollar eased slightly, which helped silver prices gain a toe hold.

Technical analysis

Silver prices closed up slightly on Wednesday, poised to test resistance near the breakdown level at 24.42. Additional resistance is seen near the 200-day moving average at 25.86. Support is seen near the 10-day moving average at 23.55 and then near the August lows at 22.10. Short-term momentum has turned positive as the fast stochastic generated crossover buy signal.  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).

Business Spending Was Flat in July

New orders for nondefense capital goods excluding aircraft a proxy for business investment were unchanged in July compared with the previous month. Durable goods orders for products meant to last three years decreased 0.1% to $257.2 billion in July month over month according to the Commerce Department Expectations were for a decline of 0.5%.  The increased 0.8% in June from the prior month, unchanged from the initial estimate for the month. Demand for durable goods has increased in 13 of the past 15 months.