Silver Price Prediction – Prices Rise as Yields Declined Following Jobless Claims Report

Silver prices rallied as the dollar declined, helping buoy the entire precious metals complex, including gold prices. This all transpired following f the Fed’s decision to reduce their bond purchase program on Wednesday. U.S. Yields were lower, as the market priced in the Fed’s 3-rate hikes described in its new interest rate outlooks. Jobless claims rose more than expected but remain close to the lowest levels in the past 50-years.

Technical Analysis

Silver prices rebounded bouncing near support at the September lows at 22.10. Prices recaptured short-term resistance which is now supported near the 10-day moving average at 22.28. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum is poised to turn positive as the MACD (moving average convergence divergence) index is about to create a crossover buy signal.

Jobless Claims Rise More than Expected

Jobless claims rose to 206,000, above the 195,000  expected gain of 18,000 from the previous week’s upwardly revised 188,000. According to the Commerce Department figures, the four-week moving average totaled 203,750, the lowest level since November 15, 1969. Continuing claims, data for which runs a week behind the headline number declined 154,000 to 1.845 million, the lowest since March 14, 2020.