Silver Price Prediction – Prices are consolidating as the dollar subsides
Silver prices rose slightly, but gave way after trying to move higher. The dollar lost and yields rose. Gold prices also rose slightly, which led to a low price trend in the precious metals sector. Treasury bond yields continue to rise despite a weaker-than-expected US job report. According to the Ministry of Labor, the number of non-farm workers increased by only 194,000 a month, compared to expectations of 500,000. According to sources, the survey was conducted in the first 2 weeks of September when the spread of the Delta variant peaked.
Silver prices rose slightly as the dollar fell. Resistance is seen near the 50-day moving average at 23.49. Support is seen near the 10 year moving average at 22.45. The short-term momentum is positive as the fast stochastics recently generated a crossover buy signal. The medium-term momentum has turned positive as the MACD (Moving Average Convergence Divergenence) index generated a crossover buy signal. This happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in the positive area with an upward sloping path, which indicates higher prices.
US unemployment rate is falling
According to the US Department of Labor, the unemployment rate fell to 4.8%, a better-than-expected 5.1%, and its lowest level since February 2020. The number of non-farm employees rose by 194,000 in September compared with 500,000 expected. Headline numbers were hurt by a 123,000 drop in government payrolls while private payrolls rose 317,000. Despite the weak employment rate, wages rose sharply. The monthly increase of 0.6% lifted the year-over-year increase to 4.6% as companies use wage increases to address ongoing labor shortages.
This article was originally published on FX Empire