Silver Price Prediction – Prices Rise as the Dollar Loses Ground

Silver prices moved higher but remain rangebound. The dollar eased giving a boost to the precious metals complex. Gold also moved higher giving a boost to silver prices. Yields were lower as mixed data weighed on the greenback. Weaker than expected construction spending for August weighed on yields which in turn generated headwinds for the greenback and help buoy gold prices.

Silver prices edged higher and remained sandwiched between resistance at the 10-day moving average at 24.12 and support near the 50-day moving average at 23.39. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is decelerating as the MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.

Construction Spending Slipped

According to the Commerce Department, construction spending dropped 0.5% after edging up 0.1% in August. Expectations were for construction spending to gain 0.4%. Construction spending increased 7.8% on a year-on-year basis in September. This followed news that ISM manufacturing prices paid surged. The survey’s measure of prices paid by manufacturers accelerated to 85.7 from a reading of 81.2 in September.