Silver Price Prediction – Prices Slip on Strong Jobs Data

Silver prices moved lower on Wednesday and eased for the second consecutive day following last weeks rally. The dollar rallied despite U.S. treasury yields declining. The Labor Department released their JOLTs report which showed a huge uptick in the number of jobs that are currently available in the United States.

Technical analysis

Silver prices moved lower after rallying last week slipping through support now resistance near the 10-day moving average at 24.13. Additional resistance is seen near the 50-day moving average near 24.81. Support is seen near the August lows at 22.10. 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).

Job Openings Surge Higher

The Labor Department reported that job openings increased to 10.9 million positions open. That was much higher than the estimate of 9.9 million and the June total of 10.2 million. With unemployment insurance likely to decline, this number could have peaked. Hiring slowed sharply in August, with payrolls growing by just 235,000 even as the total unemployed dipped to just shy of 8.4 million. The rate of job openings measured against the total labor force swelled to 6.9% in July, up from 6.5% the previous month and 4.6% a year ago.