Silver Price Prediction – Prices Slip Following Robust PPI

Silver prices moved lower as the dollar gained traction. The dollar as U.S. Treasury yields increased in value. A stronger-than-expected PPI report buoyed the greenback. This follows the ECB decision on Thursday to keep rates unchanged but was less hawkish than expected.

Technical analysis

Silver prices moved lower failed to recapture resistance near the 10-day moving average at 24.17. Additional resistance is seen near the 50-day moving average near 24.73. Support is seen near an upward sloping trend line that comes in near 23.90. The fast stochastic generated a crossover sell signal which reflects accelerating negative momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This buy signal occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

Hourly Earnings Jump Driving PPI

Average hourly earnings jumped 0.6% for the month, about double what had been expecting, and the increase from a year ago stood at a robust 4.3%, up from a 4% rise a month ago.According to the U.S. Labor Department, U.S. producer prices increased more than expected in July. The producer price index (PPI) 1.0% last month after rising 1.0% in June. Expectations were for PPI to rise by 0.6%. In the 12 months through July, the PPI jumped 7.8%, a record high since the measure was introduced just over a decade ago.

This article was originally posted on FX Empire


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