Silver Price Prediction – Silver prices rally as the dollar falls on weak jobs data

Key Insights

• Silver prices rose as the dollar pulled back.
• Treasury yields continue to fall on rising bond prices.
• Oil prices fall as US companies plan to increase supply. 

Silver prices traded higher amid disappointing jobs data pointing toward potential slowing economic growth. Gold prices rise as yields and the dollar slide due to its safe-haven appeal.

The dollar retreats on weaker-than-expected jobs data. Benchmark yields slid as investors pour into bonds amid the market sell-off. The ten-year yield slid by 7 basis points today.

Oil prices move higher on the prospect of a European ban on Russian oil. This situation has offset plans of easing restrictions in Shanghai, which can boost demand.

Last week’s jobless claims unexpectedly rose to their highest levels since January. Initial claims rose to 218,000, increasing by 21,000 from the previous week. However, continuing claims dropped to 1.32 million, the lowest level since 1969.  

Higher interest rates reduce demand for labor. The Fed’s plans to aggressively tighten rates to rein in inflation can reduce the tightness of the labor market, and there might be an uptick in demand compared to job supply.

Technical Analysis

Silver prices hit one-week highs and are headed toward the $22 level. A pullback in prices will find support near the mid $21 level, favoring bullish traders. A larger break below that level might shift bias toward a bearish outlook.

Support is seen near the 10-day moving average of $21.5. Resistance is seen near the $22 level. Short-term momentum is positive as the fast stochastic had a crossover buy signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in positive territory, which reflects an upward trend in price movement.