Silver prices reversed course on Tuesday after the long holiday weekend following a large rally on Friday in the wake of the U.S. Jobs report. The dollar rallied as U.S. treasury yields surged. Later in the week, the Labor Department will release the JOLTs report, and the Fed will release its Beige book.
Silver prices moved lower after rallying on Friday but held support near the 10-day moving average at 24.12. Resistance is seen near the 50-day moving average near 24.81. The fast stochastic generated a crossover sell signal which reflects accelerating negative momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This buy signal 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).
JOLTs Report Likely to Show More Job Openings
On Wednesday, the Labor Department will issue the JOLTs report, which will likely show an increase in the number of jobs available. The JOLTS report for June showed that more than 10-million jobs were open in the United States. Additionally, this week the Fed Beige book will also be released, which might shed light on the way the Fed will lean when it meets to decide monetary policy.