Silver holds steady as bond yields consolidate
Silver prices remain in a tight trading range as precious metal prices remain in limbo following the flight of US yields. Economic data in the US has been mixed over the past week, which should be culminated in this weeks release of 2nd quarter GDP. Expectations for growth are .8%, which can barely be considered an expansion.
Silver prices moved similar to other currencies against the US dollar. The dollar has been trading in a choppy range since the perceived announcement by Fed Chairman Ben Bernanke that the FOMC might considered the tapering of its bond purchase program during their September FOMC meeting. The Fed meets in July and expectations are for no movement and very little change the the Fed economic forecast.
Yields in the US has backed up to 2.6% and have remained around this level since breaking out in late May. Although the ecnomic data has not yet justified these levels, market participants believe that an eventual tapering will generate further liquidation in bonds.
Given that silver prices trade as a currency, the stronger dollar has eroded the value of silver. Silver is also considered an industrial metal and the decline in economic performance in China and the US have detracted from Silver’s value.
Technically, silver remains in a tight range below resistance near a horizontal trend line at 20.63. Support is seen near the 10-day moving average at 19.97, and then lower at the bottom end of the recent range near 18.20.
Momentum is positive with the MACD (moving average convergence divergence index) is printing in the back, but the trajectory of the index is flattening. The RSI (relative strength index) which is an oscillator that measures overbought and oversold levels is printing near 49 which is in the middle of the neutral range.
- Netflix tops S&P 500 in 2013, investors eye earnings report 1 view
- Strong GDP Growth From Ireland 1 view
- BIND Therapeutics Appoints Hagop Youssoufian, M.Sc., M.D. as Chief Medical Officer 1 view
- American manufacturers outpace expectations: ISM 1 view
- US stocks rise as signs of prolonged stimulus emerge 1 view
- Christopher Brody to Step down From Intuit Board of Directors; Richard Dalzell Nominated 1 view
- European Session – Dollar rebounds after jobless claims and services PMI data 1 view
- The Yen Continued to Weaken, Sterling was Also on the Move 1 view
- Euro Declines on Weak PMI Ahead of Jobs Report, RSI is Oversold 1 view
- Ryanair shares slide on safety concerns 1 view
|Forex Broker Spreads »|
|Most Popular Articles »|
- FOREX Watch: US dollar breaks sticking point 1 view
- US Dollar Edges Higher on ADP Employment Report 1 view
- Fedex & UPS Scramble Amid Media Fire 1 view
- Stocks close mixed despite strong economic data 1 view
- US Demand, Global Prospects to Boost Canada’s Economy in 2014 1 view
- Alliance Healthcare Services Establishes Partnership with The Pain Center of Arizona 1 view
- Eurozone Retail Sector Under Pressure 1 view
- Spanish Inflation Falls Back To Zero 1 view
- Vernalis, all eyes on the new cough/cold drug 1 view
- Lululemon Tanks on Guidance Woes 1 view