Silver Price Prediction – Prices Consolidate As Treasury Yields Surge

Silver prices edged lower and continue to consolidate in a very tight range. The dollar found traction and also moved sideways. Gold prices where nearly unchanged and traded in lockstep with silver prices. U.S. Treasury yields moved higher following a stronger than expected U.S. jobless claims data which comes ahead of Friday’s Non-farm payroll report. Expectations are for a 500K increase following Wednesday’s robust ADP private payroll report.

Technical analysis

Silver prices closed lower but were nearly unchanged. Resistance is seen near the 50-day moving average at 23.60. Support is seen near the 10-year moving average at 22.41. Short-term momentum is positive as the fast stochastic recently generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This 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). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

Private Payrolls and Solid Claims Data Point to Robust Employment Report

A strong private payroll report is expected to foreshadow a strong government report which will be reported on Friday. Economists expected 500,000 new jobs According to the U.S. Labor Department, U.S jobless claims declined to 326,000 for the week ended October 2, below the 345,000 expected and a drop from the previous week’s 364,000.