Silver Price Prediction – Prices Rise Ahead of CPI

Silver prices moved higher U.S. yields moved up ahead of Tuesday’s CPI report from the U.S. Labor Department. The New York Federal Reserve reported on Monday its June Survey of Consumer Expectations. The report showed that consumers expected inflation to rise by 4.8% year over a year on average. Copper prices moved higher but were offset by declining gold prices. The dollar was nearly unchanged.

Technical analysis

Silver prices moved higher on Monday eclipsing key resistance near the 10-day moving average of 26.14 which is now seen as support. Resistance is seen near the 50-day moving average at 27.05. The daily chart appears to have formed a triple top which will generate headwinds for prices. Short-term momentum flip-flopped and turned positive as the fast stochastic generated a crossover buy signal. 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).

CPI is Expected to Remain Elevated

The June consumer price index, is expected to show a 5% year-over-year gain, matching the May level, which was the highest since August 2008. The core CPI is projected to rise 4%, up from 3.8% for what would be the highest since January 1992. This follows the NY Federal Reserve reported on Monday that showed that on average, consumers expected inflation to rise by 4.8% year over a year an increase of 0.8 from May.