Silver Price Prediction – Prices Tumble as the Dollar Rallies Despite Weak Jobless Claims DataPrices drop as the dollar gains traction
Silver prices tumbled on Thursday, breaking through support levels and poised to test lower levels. The dollar rallied following the Fed’s more hawkish than expected commentary on Wednesday, as 7-Fed governors now expect the Fed to raise rates in 2022. Jobless claims rose more than expected, which helped the 10-year yield ease following Wednesday’s rally. According to Mortgage News Daily, the average rate on the popular 30-year fixed mortgage moved decidedly higher, hitting 3.25%.
Silver prices tumbled on Thursday, breaking down and forming a topping pattern. Support is seen near an upwards sloping trend line that comes in near $25.07. Resistance is seen near the 50-day moving average at 27.01. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is flat as the MACD (moving average convergence divergence) histogram is printing in positive territory with a sliding trajectory that points to consolidation. After consolidating for weeks, prices have declined for 4-consecutive trading days but will like seeing buyers come near trend line support.
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Yields Ease on Weak Claims Report
Initial jobless claims came in higher than expected, showing that the recovery in employment is not a straight line. First-time filings for unemployment insurance for the week ended June 12 totaled 412,000, compared with the previous week’s 375,000. Expectations were for a decline to 360,000. Since the Fed makes its decisions based on employment and price stability they are likely to let inflation run a bit hotter than expected to help buoy employment.