Silver Price Prediction – Prices Slide Following Strong Claims Data

Silver prices moved lower as the dollar gained traction. Gold prices also moved lower weighing on the entire precious metals complex. The U.S. Yield curve flattened, but yields moved higher as jobless claims hit a  50-year low. More robust yields buoyed the dollar which generated negative momentum for silver prices. All eyes are on the consumer price index expected to be released on Friday by the U.S. Labor Department.

Technical Analysis

Silver prices moved lower on Thursday. 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 22.55. The 10-day moving average has crossed below the 50-day moving average which means a short-term downtrend is now in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Short-term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal. Prices are still oversold as the fast stochastic is printing a reading of 5, below the oversold trigger level of 20.

Initial Jobless Claims Hit a 50-Year Low

Continuing claims rose 38,000 to 1.992 million in the week ended November 27. There were 1.948 million people receiving benefits under all programs in the week ended November 20, down 350,527 from the prior week. Jobless claims tumbled 43,000 to 184,000 for the week ended December 4, the lowest level since September 1969. Expectations were for claims to rise to 215,000 applications for the latest week.