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The price of silver fell as the dollar gained traction. The dollar as US Treasury bond yields appreciated. A stronger than expected PPI report gave the greenback a boost. This follows Thursday’s decision by the ECB to leave rates unchanged but was less restrictive than expected.
Technical analysis
Silver moved lower and failed to regain resistance near the 10-day moving average at 24.17. Additional resistance is seen near the 50-day moving average at 24.73. Support is seen near an upward sloping trendline near 23.90. The fast stochastics generated a crossover sell signal that reflects the increasing negative momentum. The medium-term momentum has turned positive as the MACD (Moving Average Convergence Divergenence) index generated a crossover buy signal. This buy-signal occurs 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).
Hourly earnings of erratic PPIs
Average hourly wages rose 0.6% for the month, about twice as much as expected, and the year-over-year increase was a robust 4.3% compared to a 4% increase a month ago, prices rose more than expected in July . The producer price index (PPI) 1.0% last month after rising 1.0% in June. The PPI was expected to increase by 0.6%. In the 12 months to July, the PPI rose 7.8%, a record high since the measure was introduced just over a decade ago.
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