Silver Price Prediction – Prices Slide as Yields Break Higher

Key Insights

• Silver prices moved lower on Thursday.
• Treasury yields appear to be breaking out.
• Gold prices moved lower as the dollar rallied.

Silver prices moved lower along with most of the precious metals complex. U.S. Treasury yields continued to rebound, despite a higher than expected increase in jobless claims. On Friday the Labor Department will release its CPI report. A much stronger than expected number will spook the market.

Initial jobless claims totaled 229,000, an increase of 27,000 from the upwardly revised level, more than the 210,000 expected. The last time initial claims were that high was in January. 15. Continuing claims, were unchanged at just over 1.3 million, below estimates of 1.35 million. The four-week moving average for continuing claims declined slightly to 1.32 million, the lowest level since January 10, 1970.

Technical Analysis

Silver prices moved lower, slipping through support which is now resistance near the 10-day moving average of 21.98. Support is seen near the June lows at 21.43.

The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative which reflects consolidation.