Silver prices traded sideways as the dollar index broke out. Since silver is quoted in U.S. dollars, a stronger greenback generally leads to lower silver prices. Gold prices also moved sideways, leaving little upside for silver. U.S. yields were unchanged and slightly lower following a dip in the number of job openings reported on Tuesday by the Department of Labor. The Quit Rate also hit a new 20-year high, as most employees left bars and restaurants.
Technical analysis
Silver prices edged lower following a rally in the dollar. Resistance is seen near the 50-day moving average at 23.37. Support is seen near the 10-year moving average at 22.45. Short-term momentum is negative as the fast stochastic recently generated a sell 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.
Job Openings Declined
Employment vacancies fell to 10.44 million during the month, a drop of 659,000 from July’s upwardly revised 11.1 million, according to the department’s Job Openings and Labor Turnover Survey. The total fell well short of market expectations for 10.96 million openings.
