Silver prices consolidate after upbeat US data
Silver prices traded on the defensive, moving below support levels as the dollar remained srong on the heels of a better than expected jobless claims report. Yields in the US edged higher raising the value of the dollar and eroding the value of silver which trades like a currency against the greenback.
The main driver in the US is likely to be a combination of data and Ben Bernanke’s testimony to the other half of congress which is the Senate. The prepared remarks, are identical with Wednesday’s statement but the interest from investors will be the question and answer session which was slightly different. It seems that Bernanke has been delivering the same message since at least mid-June, which is monetary policy is completely dependent on data and the current data is not sufficient to make any changes to the bond purchase program.
In economic data, jobless claims declined by much more than investors expected. Initial jobless claims, fell by 24,000 to 334,000 in the week ended July 13, according to the Labor Department. Also, the prior week’s figure was revised to 358,000 new claims from an initially reported 360,000. Economists surveyed had expected 340,000 new claims in the latest week. Most of the change came as a result of seasonal expectations that auto factories would close during the week, which did not occur as companies where attempting to drive supply to meet the exceptional demand for autos.
Silver prices close through support near the 10-day moving average on Wednesday which now will act as resistance near 19.50. Support is seen near the recent lows at $18.77. Momentum is up as reflected by the MACD but the trajectory of the index is flat. The RSI is printing near 44 which is in the middle of the neutral range.
Sorry. No data so far.