Silver Price Prediction – Prices Rally as Dollar Eases
Silver prices rebounded as the dollar initially slipped from a six-month high. Treasury yields were mixed, but the surge in the interest rate differential in favor of the greenback over the past couple of weeks has put pressure on silver prices. Gold prices were also higher, helping to lift the precious metals complex. Since silver is priced in U.S. dollars, a stronger U.S. currency makes silver more expensive in other currencies.
Silver prices surged higher on Thursday rebounding after closing through horizontal trend support and poised to test lower levels. Target support are the June 2020 lows at 16.25. Short-term support on silver prices are seen near the recent breakdown level at 22.10. Resistance is seen near the 10-day moving average at 22.36. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The RSI is printing a reading of 38, up from 29 which is also an oversold reading. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram prints in negative territory with a downward sloping trajectory which points to lower prices.
Mortgage Applications Fell
After gains the previous week, total mortgage application volume fell 1.1% last week from the previous week, according to the Mortgage Bankers Association’s index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $548,250 increased to 3.10% from 3.03%.