Silver Price Prediction – Prices Rise on Slip in Import Prices

Silver prices rebounded on Friday following an unexpected drop in confidence. The slip in sentiment weighed on U.S. yields which helped create a liquidation of the dollar.  U.S. Import prices were less than expected, taking some of the steam out of the rally in bond yields. Over the week, investors needed to absorb a softer than expected core CPI report followed by a stronger than expected headline PPI report. What is clear is that shipping rates are rising and keeping wholesale prices elevated.

Technical analysis

Silver prices rallied on broad dollar weakness, headed toward short-term resistance near the 10-day moving an average at 24.31. Target support is seen near August lows at 22.10. Short-term momentum has turned positive as the fast stochastic generated crossover buy signal.  Medium-term negative momentum is decelerating as the MACD histogram is printing in negative territory with a rising trajectory which points to consolidation.

Import Prices Disappoint

Mixed inflation readings were released this week in the U.S. On Friday, the government released U.S. import prices which increased less than expected in July. Import prices rose 0.3% last month after jumping 1.1% in June. Expectations were for import prices, to increase by 0.6%.