Silver Price Prediction – Prices Rise Despite Higher Treasury Yields
Silver prices whipsawed and attempted to move higher but failed and eased lower into the close. The dollar rebounded from session lows which reversed the course of precious metals. Since most precious metals are priced in dollars, a stronger greenback usually leads to lower silver prices. Yields were mixed, with the 2-year continuing to trend higher while the 10-year Treasury yield pulled back. More robust than expected Markit PMI numbers helped buoy the 2-year yield, which weighed on silver prices.
Silver prices attempted to move higher but failed and settled nearly unchanged into the close. Support near the 10-day moving average at 23.46. Resistance is seen near the September highs at 24.82.. The 10-day moving average crossed above the 50-day moving average, which means a short-term uptrend is in place. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal. Medium-term 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). The MACD histogram is printing in positive territory with a flattening trajectory which points to consolidation.
PMI surveys Were Mixed
The initial flash of the October Purchasing Managers Survey, showed stronger business activity. Markit reported on Friday that the U.S. Composite Output Index rose to 57.3 from 55.0 in September compared to expectations of 54.7. 3-month high. Flash U.S. Services Business Activity Index increased to 58.2 compared to 54.9 in September. Expectations were for a reading of 55.1. 3-month high. Flash U.S. Manufacturing PMI at 59.2 compared to 60.7 in September. Flash U.S. Manufacturing Output Index at 52.3 was a 15-month low.