Silver Price Prediction – Prices Rally but Remain Rangebound

Silver prices rallied in the wake of the Fed decision and the decision by the Bank of England to leave the interest rate unchanged and to keep their bond purchase program steady. This move compared to the Fed that decided to taper their bond purchase program. Interest rates dropped sharply, and the dollar rallied. ADP released a stronger than expected private payroll report on Thursday ahead of Friday’s Non-Farm Payroll report. Expectations are for payrolls to rise by 450,000 jobs.

Technical analysis

Silver prices rallied but remain sandwiched between two moving averages. Resistance is seen near the 10-day moving average at 24. Support is seen near the 50-day moving average at 23.39. Short-term momentum is negative as the fast stochastic generates a crossover sell signal. Medium-term momentum has also turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD line). The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.

Private Payrolls Rise More than Anticipated

According to ADP and Macro-Economic Advisors, U.S. companies added 571,000 for the month, beating expectations of 395,000 and above September’s 523,000. It was the best month for jobs since June. From a size standpoint, businesses with more than 500 employees by far led the way with 342,000 new hires. Businesses with fewer than 50 workers added 115,000 and medium-sized firms increased by 114,000.