Silver price prediction – prices rise as yields fall

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Silver prices continued to rebound as the dollar slid from its six-month high. Government bond yields were lower, which weighed on the greenback. Gold prices were also higher and contributed to the appreciation of the precious metal complex. Since silver is valued in US dollars, a weaker US currency makes silver cheaper in other currencies. Despite a stronger than expected ISM manufacturing report, US yields fell.

Technical analysis

The silver price continued to rebound after rising on Thursday. Target support is the June 2020 lows at 16.25. Short-term support for the silver price is seen near the recent dip at 10/22. Resistance is seen near the 50-day moving average at 23.74. The short-term momentum has turned positive as the fast stochastics generated a crossover buy signal. The RSI prints a value of 44 versus 29, which is also an oversold value. The medium-term momentum is flat to neutral as the MACD histogram prints with a rising trajectory in the negative area.

Production is increasing faster than expected

The ISM US manufacturing index rose to 61.1% in September from 59.9% in the previous month. An index of 59.5% was expected. The order intake index remained stable at 66.7% in September. Production decreased by 0.6 percentage points to 59.4%. Employment rose by 1.2% to just above the growth mark of 50.2. The price index rose 1.8 percentage points to 81.2%.


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