Silver Prices Surge and Test Key Resistance
Silver prices surged higher on Thursday despite benchmark yields consolidating. The 10-year yield hovers three basis points off near 1.83%. The 2-year yield curve also remains elevated, rising slightly to near 1.04%. Gold stabilizes above 1840 as bond yields moved higher. The US dollar pulls back against most currencies. Although rising yields crushed US stocks earlier this week, they are set to rebound today. The tech-heavy Nasdaq ended yesterday’s trading day in correction territory, causing stock futures to rebound.
On Thursday, silver prices moved higher looking to test long-term resistance. Long-term resistance is seen near the 200-day moving average at 24.65. Short-term momentum has stalled and might turn negative as the fast stochastic 14-day range reversed the trend. Prices are now overbought. The fast stochastic is printing a reading of 100, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
Jobless Claims Data Higher Than Expected
Weekly initial jobless claims for the week that ended on January 15th jumped to 286,000. The reading was the highest that it has been since October. The four-week average was 231,000, up 20,000 from the week before’s average. Since quits and job openings are reported on a time lag, it is likely that the surge in Omicron has led to slower job growth.