Silver Price Prediction – Prices close near the session low after the Dead Cat Bounce
The silver price tried to rise along with the gold, but failed to gain momentum and closed shortly before trading began. The trend is falling. The price of silver closed the week at 7.23%. This decline followed Thursday’s silver price collapse which broke support levels. The dollar continued to rebound after the Fed came more restrictive than expected on Wednesday as 7-Fed governors now expect the Fed to hike rates in 2022. Fed’s Bullard interviewed CNBC today in which he said the Fed’s comments were meant to be restrictive and believe there will be a rate hike in 2022.
Silver prices tried to move higher but failed and collapsed, ready to test lower levels. Support is seen near an upward sloping trendline near $ 25.07. Resistance is seen near the 50-day moving average at 27.02. The short term momentum turned negative as the fast stochastics generated a crossover sell signal. Medium-term momentum turned negative as the Moving Average Convergence Divergenence (MACD) index generated a crossover sell signal. This happens when the MACD line (the 12-day moving average minus the 26-day moving average) falls below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in red with a downward sloping trajectory, which indicates lower prices.
The Fed’s restrictive tone was reiterated on Friday when St. Louis Federal Reserve President James Bullard told CNBC that he sees an initial rate hike in late 2022 as inflation picks up faster than previous projections. Bullard described the Fed’s moves in several places this week as restrictive or in favor of tighter monetary policy.