Silver Price Prediction – Prices Rise on Dovish Fed
The Silver rose on Friday following Fed Chair Powells speech at Jackson Hole. The Fed Chair kept to his motto that inflation is transitory. The dollar moved lower as U.S. Treasury yields declined, as consumer sentiment eased, and inflation expectations dropped. Powell signaled to the markets that the Fed is likely to initiate the tapering of its bond purchase program sometime in 2021.
Silver prices rallied on Friday, falling short of resistance near the breakdown level at 24.42. Additional resistance is seen near the 200-day moving average at 25.85. Support is seen near the 10-day moving average at 23.61 and then near the August lows at 22.10. Short-term momentum has turned positive as the fast stochastic generated crossover buy signal. 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).
Consumer Income Rise
According to the Commerce Department, consumer income rose 1.1% in July, the most significant jump since March. This spring was mainly due to an expanded child tax credit included in Congress’s $1.9 trillion pandemic relief package. Growth in consumer spending slowed last month to 0.3%, less than June’s spending increase of 1.1%.