Silver Price Prediction – Prices Slide Ahead of CPI

Silver prices moved lower following a decline last week that saw silver prices drop for the week by 2%. The dollar whipsawed but move higher. The Silver ishares ETF also declined. Yields moved higher as the market continued to focus on inflation fears. Riskier assets like stock surged, which weighed on silver as a safe haven asset.

Technical Analysis

Silver prices moved lower following last weeks decline. Prices are poised to test target, support is seen near the September lows at 21.42. Resistance is seen near the 10-day moving average at 22.92. The 10-day moving average has crossed below the 50-day moving average which mean a short-term downtrend is now in place. Medium-term momentum has turned negative as the MACD (moving average convergence divergence index) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. Prices are oversold as the fast stochastic is printing a reading of 7, below the oversold trigger level of 20.

Inflation Expectations Remain High

The U.S. Labor Department is expected to release its CPI later this week. Expectations are for a 6.7% year-over-year increase. This information follows the 0.3% year-over-year increase in wage inflation the Labor Department reported on Friday.