Silver Price Prediction – Prices Slip on Slipping Confidence
Silver price slipped as a climbing dollar weighed on prices. The greenback was able to gain traction as yields surged higher in the wake of better housing price data. Weaker than expected consumer confidence also weighed on prices.
Silver prices slid on Tuesday as yields continued to rise. Prices are poised to test support near the September lows at 22.03. Resistance is seen near the 10-day moving average at $22.66. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The medium-term positive rate is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a declining trajectory which points to consolidation. The relative strength rebounded and then moved lower after testing the oversold trigger level of 30.
Consumer Confidence Fell
U.S. consumer confidence fell to a 7-month low in September as COVID-19 cases deepened concerns about the economy’s near-term prospects, fitting in with expectations for a slowdown in growth in the Q3. The Conference Board said its consumer confidence index dropped to a reading of 109.3 this month from 115.2 in August. The third straight monthly decline pushed the index to the lowest level since February. The measure, which places more emphasis on the labor market, has dropped 19.6 points from a peak of 128.9 in June. Expectations had been for the index nudging up to 114.5.