Silver Price Prediction – Prices Rise, as Negative Momentum Decellerates

Silver prices moved higher along with gold prices as the dollar eased and yields declined. Prices remained above short-term support.  The rally in the dollar has been generating headway for silver. Copper prices also rose, which helped benefit silver prices.  U.S. Treasury yields moved lower following the nonfarm payroll report. Despite the more substantial than expected number, the unemployment rate rose more than expected.

Technical analysis

Silver prices moved higher and continue to consolidate. Prices remain above short-term support, which is seen near the 10-day moving average at 26.0. Resistance is seen near the 50-day moving average at 27.06. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum has decelerated, and the MACD (moving average convergence divergence) index is poised to generate a crossover buy signal. This scenario occur 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 Employment Rate Rises Despite Robust Payrolls

The unemployment rate rose more than expected, climbing to 5.9% from 5.6%. This rise came as nonfarm payrolls increased 850,000 for the month, compared with expectations of 706,000. The jobless rate increase came even though the labor force participation rate was unchanged at 61.6%. which means there were job losses according to this survey.