Silver Price Prediction – Prices Fall on Dollar Gains

Silver prices reversed course and fell on Thursday. The move-in silver comes despite a rise in gold prices and a flat dollar. All eyes are on the Federal Reserve and Chair Powells speech on Friday at Jackson Hole, Wyoming. Jobless Claims rose but less than expected and U.S. GDP was slightly higher than the initial reading.

Technical analysis

Silver prices closed down on Thursday, falling short of 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 23.55 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).

GDP Rises More than Expected

Gross domestic product rose at a revised 6.6% annualized pace in the second quarter. Originally the increase was put at 6.5%. The slight increase in GDP reflected somewhat stronger consumer spending and U.S. exports than initially reported. The revised GDP report also included the first look at corporate profits in the second quarter. Adjusted pre-tax profits jumped at a 9.2% annual rate and suggested businesses have plenty of capital to continue investing and hiring.