Advertisement
Advertisement

Silver Price Prediction – Prices Rise on Dollar Weakness

By:
David Becker
Updated: Sep 3, 2021, 19:25 UTC

Yields close mixed

Silver Price Prediction – Prices Rise on Dollar Weakness

 

Silver prices surged on Friday as the dollar continued to trend lower in the wake of the softer than expected US Jobs report. Despite revisions to both July and June, the less than expected NPF number weighed on the greenback, helping to buoy silver prices.  Gold prices also surged which gave a boost to the total precious metals complex.

Technical analysis

Silver prices surged higher testing resistance near the July highs which coincide with the 50-day moving average near . Additional resistance is seen near the 50-day moving average at 24.78. Support is seen near the 10-day moving average at 23.98. Prices are overbought as the fast stochastic is printing a reading of 92, above the overbought trigger level of 80 and could foreshadow a correction.  The fast stochastic generated a crossover sell signal which reflects accelerating negative momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This buy signal 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).

 Unemployment Rate Declines to Pandemic Lows

According to the Labor Department, the U.S. unemployment rate declined to a pandemic low of 5.2%, down from July’s reading of 5.4%. Expectations were for unemployment to decline to 5.2%. Wages gains continue to pressure inflation. Average hourly earnings, month-over-month increase to 0.6% versus 0.3% expected and 0.4% in July.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?

Advertisement