Silver Price Prediction – Prices Slide on Dollar Strength
Silver prices moved lower, on Friday and finished the week down 2.5%. The week can be summarized by a strong move in the greenback which put downward pressure on the precious metals complex. The dollar moved higher on Friday and closed up nearly 1% for the week. Yields moved lower as the market attempted to absorb who might have the best chance to be Fed Chair. Lael Brainard is the Vice-Chair and is meeting with Senators to take the temperature of her nomination. Many moderates and republicans support Jerome Powell who is the incumbent, but his term is nearly up.
Silver prices slipped on Friday and closed through short-term support. This level is now resistant near the 10-day moving average at 24.84. Target resistance is the August highs at 26. Support is seen near the 50-day moving average at $23.53. Short-term momentum has flip-flopped and turned negative as the fast stochastic generates a crossover sell signal. Medium-term positive momentum is decelerating as the histogram is printing in positive territory with a sliding sloping trajectory which points to consolidation. The MACD line is poised to generate a crossover sell signal which would reflect accelerating negative momentum.
Biden is dealing with a new Fed Chair nomination and trying to push through a social agenda that could not fit into the infrastructure plan. The Congressional Budget Office offered its evaluation of the Biden administration’s Build Back Better initiative. It forecasts $1.636 trillion in spending over the next 10-years and almost $1.27 trillion in revenue. That would generate new deficit spending of -$367 billion.