Silver Price Prediction – Prices Close Near Session Lows After Dead Cat Bounce
Silver prices attempted to move up in tandem with gold, but were unable to gain ground and closed around the opening of the trading session. The trend is downward. Silver prices closed down 7.23% for the week. This decline followed the fall in silver prices on Thursday, breaking through support levels. The dollar continued to rally after the Fed’s more hawkish-than-expected comment on Wednesday, as Fed 7 governors now expect the Fed to hike rates in 2022. Fed’s bullard interviewed to CNBC today where he said the Fed’s comments were intended to be hawkish and believe there will be a rate hike in 2022.
Silver prices have tried to go up but have failed and collapsed and are ready to test lower levels. Support is seen near an ascending trendline approaching $ 25.07. Resistance is seen near the 50 day moving average at 27.02. Short term momentum turned negative as the Fast Stochastic generated a cross sell signal. Medium term momentum turned negative as the MACD (Moving Average Convergence Divergence) index generated a cross sell signal. This happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. MACD histogram prints in red with a sloping trajectory that indicates falling prices.
The Fed’s hawkish tone was reiterated on Friday when Federal Reserve Chairman James Bullard told CNBC he expected a first interest rate hike in late 2022 as inflation rose more. faster than previous forecasts. Bullard has repeatedly described the Fed’s moves this week as hawkish or in favor of tightening monetary policy.
This item was originally posted on FX Empire