Silver Price Prediction – Prices Rise Despite a Rising Dollar as NY Manufacturing Surges

Silver prices moved higher on Thursday, following stronger than expected NY Manufacturing data which buoyed industrial metals. Copper prices moved higher. The dollar moved higher, but U.S. yields declined on the long end of the curve. New York Manufacturing rose to a record high. The Labor Department reported a pandemic level low for U.S. jobless claims, which should have helped buoy bond yields.

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Technical analysis

Silver prices moved higher on Thursday bouncing at support near the 10-day moving average of 26.16. Resistance is seen near the 50-day moving average at 27.01. Additional support is seen near an upward sloping trend line that comes in near 25.75. Short-term momentum flip-flopped and turned positive as the fast stochastic generated a crossover buy 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).

New York Manufacturing Surged

The New York Federal Reserve reported that the Empire State Manufacturing Survey, rose to a record 43 for July, representing the a rising percentage of firms seeing an expanding landscape. New orders and shipments surged, while the employment index increased 8.3 points to 20.6 as 29.5% of companies indicated they would be adding workers. A forward-looking index on conditions over the next six months also showed a hiring increase, with a reading of 43.9, up 2.2 points from June.