Silver Price Prediction – Prices Rally but Fall for the Year

Silver prices for a second consecutive trading session. Silver will finish the month up 1.8% but close 2021 down nearly 12%. The dollar eased, which continued to help buoy silver prices. Gold prices also increased, helping the entire precious metal sector gain traction. U.S. yields were down across the curve. The upward move in the greenback and higher short-term yields weighed on silver prices throughout 2021.

Technical Analysis

On Friday, silver prices rallied for a second consecutive trading session and are poised to test higher levels. Resistance is seen near the 50-day moving average at $23.44. Support is seen near the 10-day moving average at 22.82. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the fast stochastic is printing a reading of 90, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario 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.

 Chicago PMI Subindices are Mixed

The last of the regional PMI Indices were released in 2021. Among the main five indicators, Production and New Orders and were higher. Order Backlogs, Employment and Supplier Deliveries fell across the month. The Chicago Purchasing Managers Index rose to 63.1 in December. This uptick in the total index reverses last month’s decline.