Silver Price Prediction – Prices Edge Higher on Strong Home Price Report

Silver prices rallied on Tuesday as the dollar eased and Treasury yields were mixed. The markets are now focused on Friday’s Fed meeting in Jackson Hole. New home sales rose driven by gains in the South and the West of the United States. The median new house price soared 18.4% from a year earlier to $390,500 in July.

Technical analysis

Silver prices continued to rally on Tuesday, 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 23.52 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).

Housing Prices Surge

The median new house price soared 18.4% from a year earlier to $390,500 in July. Sales of new U.S. single-family homes increased in July after three straight monthly declines. New home sales rose 1.0% to an annual rate of 708,000 units last month. June’s sales pace was revised up to 701,000 units from the previously reported 676,000 units. Expectations had been for new home sales, which account for a 10.6% of U.S. home sales, increasing to rate of 700,000 units in July.