Silver Price Prediction – Prices Slip on Dollar Gains

Silver prices moved lower on Thursday as the dollar broke out. Riskier assets like stocks whipsawed, generating volatility which helped add to the greenback’s gains. The stronger than expected U.S. Jobless claims failed to lift Treasury yields. New data about the Delta variant of the COVID-virus appears to be impacting the south of the United States and now weighing on the entire economy.

Technical analysis

Silver prices slipped gain on Thursday, failing to recapture resistance near the 20-day moving average at 24.41. Target support is seen near the August lows at 22.10. Short-term momentum has turned negative as the fast stochastic generated crossover sell signal.  Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.

Employment Data Surprises

Jobless claims hit a pandemic-era low last week. Jobless claims for the week ended August 14 totaled 348,000, according to the Labor Department. That was below expectations of 365,000 and a decline of 29,000 from the previous week. Continuing claims also fell, dropping to 2.82 million on a 79,000 decrease from the week before. The better than expected jobs data showed that most of the declines came in the south of the United States.