Silver Price Prediction – Prices Rise on Dollar Weakness – FX Empire

Gold & Silver
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Silver prices rallied, breaking through resistance despite a stronger than expected jobs report from the Department of Energy.  Gold prices surged, buoying the entire precious metals complex. The Fed said they will be patient and keep a sharp eye on the job market on Thursday. They also believe that inflation will remain elevated for an extended period but will be transitory. This put downward pressure on yields, which weighed on the greenback and provided the impetus for higher silver prices.

Technical analysis

Silver prices rallied, recapturing resistance near the 10-day moving average at 23.97 which is short term support.  Additional support is seen near the 50-day moving average at 23.39. Short-term momentum has turned positive as the fast stochastic generates a crossover buy signal. Medium-term momentum has also turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD line). The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.

The Unemployment Rate Fell

According to the Labor Department, The unemployment rate fell to 4.6% and had been expected to edge down to 4.7%. The unemployment rate drop came with the labor force participation rate holding steady at 61.6%. Nonfarm payrolls increased by 531,000 for October, compared with estimates that the number of jobs would rise to 450,000. Private payrolls were even more robust, growing 604,000 as a loss of 73,000 government jobs pulled down the headline number.

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