Prediction for Silver Prices - Silver prices will rise when the dollar falls on bad employment reports

As poor employment data pointed to a possible slowdown of economic development, silver prices increased. Due to gold's attraction as a safe haven, its price rises when rates and the currency fall.

The dollar declines due to weaker-than-expected employment statistics. In the midst of a market sell-off, investors flocked to bonds, causing benchmark rates to decline. Today, the yield on ten-year bonds fell by 7 basis points.

Oil prices increase in anticipation of a European embargo on Russian oil. This circumstance has thwarted proposals to loosen limits in Shanghai, which would have boosted demand.

Unemployment claims unexpectedly reached their highest level since January last week. Initial claims increased by 21,000 from the previous week, reaching 218 000. In contrast, ongoing claims fell to 1.32 million, the lowest level since 1969.

Greater interest rates lower labor demand. The Fed's intentions to quickly raise rates to rein in inflation may loosen the labor market, leading to an increase in demand relative to job supply.

Technical Evaluation

The price of silver has reached a one-week high and is approaching the $22 mark. A fall in prices will find support at the $21 midpoint, which would benefit optimistic traders. A bigger breach below that level might alter the picture to negative.

Near the 10-day moving average of $21.5, there is support. Near the $22 level, we see resistance. The short-term momentum is bullish, since the fast stochastic signaled a buy crossing.

The medium-term momentum turns positive when the histogram and MACD both show positive values (moving average convergence divergence). The MACD histogram is moving in a positive direction, indicating an upward trend in price movement.