Silver Price Prediction – Prices Slide as Yields Rise Following Strong Claims Data

Silver prices moved lower and continue to remain rangebound. The dollar moved lower, which helped buoy silver recap some of its losses. Traders now await Friday’s non-farm payroll report. Expectations are for a 760K increase in jobs, despite the disappointing private payroll report released on Tuesday by ADP.

Technical analysis

Silver prices edged lower resistance seen near the breakdown level at 24.42. Additional resistance is seen near the 50-day moving average at 24.90. Support is seen near the 10-day moving average at 23.75. Prices are overbought as the fast stochastic is printing a reading of 80, above the overbought trigger level of 80 and could foreshadow a correction.  The fast stochastic generated a crossover sell signal which reflects accelerating negative momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This buy signal 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).

Continuing Claims Drop

The level of continuing claims, the measure of ongoing benefits, was 2.75 million, a decrease of 160,000 from the previous week. The decrease in the number of continuing claims also represents the lowest level for insured unemployment since the Covid era began. The Labor Department reported that jobless claims fell last week to their lowest levels since March 2020. First-time jobless claims totaled 340,000 for the week ended August 28, compared with the 345,000 estimates.