Silver Price Prediction – Prices Rise as Yields Decline

Silver prices continued to rally as the dollar slipped from a six-month high. Treasury yields were lower which weighed on the greenback. Gold prices were also higher, helping to lift the precious metals complex. Since silver is priced in U.S. dollars, a weaker U.S. currency makes silver less expensive in other currencies. Despite a stronger than expected ISM Manufacturing report, U.S. yields moved lower.

Technical Analysis

Silver prices continued to rally after surging on Thursday. Target support are the June 2020 lows at 16.25. Short-term support on silver prices are seen near the recent breakdown level at 22.10. Resistance is seen near the 50-day moving average at 23.74. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The RSI is printing a reading of 44, up from 29  which is also an oversold reading. Medium-term momentum is flat to neutral as the MACD histogram is printing in negative territory with a rising trajectory.

Manufacturing Rises More than Expected

The ISM U.S. manufacturing index rose to 61.1% in September from 59.9% in the prior month. Expectations had been for the index to come in at a reading of 59.5%. The new orders index held steady at 66.7% in September. Production slipped 0.6 percentage points to 59.4%. Employment inched up 1.2% to barely above the growth mark at 50.2. The index on prices rose 1.8 percentage points to 81.2%.