Silver Price Prediction – Prices Surge Following Rise in Jobless Claims

Silver prices surged higher as the dollar dropped following a softer than expected Q2 GDP report. Jobless claims also increased more than expected while pending home sales declined. These reports followed the Fed’s decision on Wednesday to keep interest rates unchanged.

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Technical analysis

Silver prices surged higher on Thursday, increasing slightly more than 2.6%.  Support is seen near the 10-day moving average at 25.21. Resistance is seen near the former breakdown line which comes in near 25.74. Momentum is positive as the fast stochastic generated a crossover buy signal.  Medium-term momentum is positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This 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). The MACD histogram also generated a crossover buy signal pushing through the zero-index with a rising trajectory which points to higher prices.

Jobless Claims Rise More than Expected

According to the Labor Department, jobless claims eased to 400,000 for the week ended July 24. That level is nearly double the pre-pandemic norm and was above the 380,000 estimates. However, it was a decrease from the previous week’s 424,000. Continuing claims edged higher to 3.27 million.