Silver Price Prediction – Prices Rise Slightly but Remain Rangebound

Silver prices rose but were met with resistance and could not break out. The dollar moved lower, helping to buoy silver prices, but higher yields were offset. U.S. yields moved higher across the interest rate curve following more robust than expected U.S. private payroll data, the strongest since May of 2021. The interest rate curve has now priced in an 80% chance of a rate hike by the Federal Reserve by March.

Technical Analysis

On Wednesday, silver prices rallied but failed to push above resistance. Resistance is seen near the 50-day moving average at $23.36. Support is seen near the 10-day moving average at 22.99. Short-term momentum has 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 scenario 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 an upward sloping trajectory which points to higher prices.

Private Job Growth Surged

ADP reported that private job growth increased by 807,000 for December, above expectations of 375,000. The November total was revised lower from the initially reported 534,000. According to the ADP data, the total was the best for the job market since May 2021′s 882,000 figure. While service-related professions led with 669,000 new hires, the goods-producing side also showed strong gains. Manufacturing rose 74,000 and construction contributed 62,000 to the total.