Silver Price Prediction – Prices Rise on Strong Factor Orders Report
Silver prices moved higher on Tuesday following a stronger than expected U.S. factory orders reports. Copper prices moved lower but failed to weigh on silver. The dollar moved sideways along with gold prices. U.S. yields moved lower despite solid gains in household debt.
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Technical analysis
Silver prices moved higher on Tuesday and is poised to test resistance. Support is seen near the 10-day moving average at 25.26. Resistance is seen near the July highs at 25.80. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term positive momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario 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).
Factory Orders Rise
According to the Commerce Department, factory orders rose 1.5% in June after advancing 2.3% in May. Expectations had been for orders to increase by 1.0%. Orders soared 18.4% on a year-on-year basis. Orders for transportation equipment increased 2.0%, boosted by a surge in bookings at Boeing. Unfilled orders at factories increased 1.0% in June. Shipments advanced 1.6%. The unfilled orders-to-shipments ratio fell to 6.94 from 6.96 in May.