Silver Price Prediction – Prices Rebound on Dollar Weakness

Silver prices edged higher and held above support levels. The dollar edged lower, which took the pressure off the precious metals complex. Yields were mixed despite a larger than expected trade deficit. The yield curve also continued to flatten, with the 2-year yield hitting the highest level since March 2020 and the 10-year moving lower.

Silver prices moved higher, bouncing near support which is seen near the 10-day moving average at 23.93. Resistance is seen near the September highs at 24.82. The 10-day moving average crossed above the 50-day moving average which means a short-term uptrend is in place. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This 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). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

The U.S. Trade Deficit Surges

The U.S. trade deficit rose significantly in September as exports tumbled. The goods trade deficit increased 9.2% to $96.3 billion, the Commerce Department reported on Wednesday. Goods exports dropped 4.7%, while imports gained 0.5%.