Silver Price Prediction – Prices Stabilize, and Remain Oversold

Silver prices stabilized and moved higher but remained in a downtrend.  U.S. yields whipsawed, especially the 2-year yield following the most significant increase in year over year 30-years. The dollar moved lower, giving a bump to gold which helped buoy the entire precious metals complex.

Technical Analysis

Silver prices moved higher on Friday. Prices are trading above target, support is seen near the September lows at 21.42. Resistance is seen near the 10-day moving average at 22.44. The 10-day moving average has crossed below the 50-day moving average which means a short-term downtrend is now in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. Prices are still oversold as the fast stochastic is printing a reading of 14, below the oversold trigger level of 20.

CPI Shows Mixed Results

The consumer price index, rose 0.8% for November, slightly lower than the 0.9% expected and 6.8% pace year over year, which was the fastest rate since June 1982. Expectations were for a headline year-over-year increase of 6.7%. Excluding food and energy prices,  CPI was up 0.5% for the month and 4.9% from a year ago, which was the sharpest pickup since mid-1991. Most of the gains were in food and energy. The Labor Department said the increases for the food and energy components were the fastest 12-month gains in at least 13 years.