Silver Price Prediction – Prices Slide as Yields Rise Ahead of Jobs Report

Silver prices moved lower on Thursday after whipsawing on Wednesday. The dollar moved lower but this failed to buoy Silver prices. Most of the attention was on yields which moved higher in the wake of the better than expected jobless claims data reported by the Labor Department on Thursday. This release comes ahead of Friday’s employment report from the Department of Labor.

Technical analysis

Silver prices moved lower after failing to rally on Wednesday.  Support is seen near the 10-day moving average at 25.14. Resistance is seen near the July highs at 25.80. Short-term momentum has flip-flopped, turning negative after turning positive on Tuesday as the fast stochastic generated a crossover sell signal.  Medium-term positive 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).

Claims Beat Expectations

Continuing jobless claims that last more than 2-weeks plunged by 366,000 to 2.93 million, which is the first time claims have declined below 3-million since mid-March 2020. The strong continuing claims data came out with Initial jobless claims which also edged lower last week. According to the Labor Department, first-time filings dipped to 385,000 for the week ended July 31, a decline of 14,000 from the previous week. The four-week moving average of claims was little changed at 394,000.