Silver Price Prediction – Silver falls as yields rise as growth concerns weigh on prices

Silver moved lower on Friday and ended the week in the red down 1.94%. The decline in silver was accompanied by a decline in the price of gold. Both were affected by the rise in the dollar. US yields rose despite a less than expected increase in the Markit PMI for services, manufacturing and the composite index.

Technical analysis

Silver fell on Friday and was dragged after recovering in two consecutive trading sessions. Support is seen near the July low at 24.75. Resistance is seen near the 20-day moving average of 25.88. The short term momentum turned negative when the fast stochastics generated a crossover sell signal. The medium term positive momentum is negative. The MACD histogram is printing in negative territory with a bearish trend, which indicates lower prices. Silver fell this week and closed below trendline support, and during the week made its losses only to fail at the breakout level.

Market PMI disappointments

The US service sector slowed in July. The Markit, July US services, expected flash PMI 59.8 versus 64.8. The last previous reading for May was 64.6. Manufacturing was also slower than expected, but didn’t see a similar decline. Since the bulk of recent activity in the US has been the hospitality rebound, it would make sense that the services would feel the pinch. Production was 63.1 versus 62.1 expected. Markit’s composite PMI was 59.7 versus 63.7 previously.