Silver Price Forecast – Prices fall as the dollar rallies despite weak unemployment claims data
Silver plunged Thursday, breaking support levels and ready to test lower levels. The dollar rebounded-than-expected on Wednesday’s more restrictive commentary from the Fed, as the governors of the seven Feds now expect the Fed to hike rates in 2022. According to Mortgage News Daily, the average interest rate on the popular 30-year fixed-rate mortgage rose significantly, reaching 3.25%.
Silver prices collapsed and collapsed on Thursday, forming a topping pattern. Support is seen near an upward sloping trendline near $ 25.07. Resistance is seen near the 50-day moving average at 27.01. The short term momentum turned negative as the fast stochastics generated a crossover sell signal. Mid-term momentum is flat as the Moving Average Convergence Divergence (MACD) histogram prints in positive territory, with a sliding trajectory indicating consolidation. After weeks of consolidation, prices have fallen on 4 consecutive trading days but will be happy to see buyers approach trendline support.
Earning relief in the case of weak claims reports
Initial jobless claims were higher than expected, showing that the recovery in employment is not in a straight line. Initial unemployment insurance enrollment for the week ending June 12 totaled 412,000 compared to 375,000 in the previous week. A decrease to 360,000 was expected. Since the Fed makes its decisions based on employment and price stability, it is likely to run inflation a little hotter than expected to stimulate employment.