Silver surges despite higher US yields
Silver prices held their ground on Thursday despite a rally in the dollar that was lead higher by strong US yields. Monday’s better than expected employment data crushed investor sentiment for riskier assets driving the dollar higher along with short and long term yields. Silver prices remained buoyed, holding support levels after rallying over the past 5-trading sessions.
Silver prices barely reacted to the stronger than expected employment data released by the BLS on Thursday. According to the Department of Labor, Initial jobless claims, which measure the number of individuals filing for unemployment insurance for the first time, fell by 15,000 to 320,000 in the week ended Aug. 10, 2013. The initial jobless claims number was the lowest level since October 2007, which reflects strength in the jobs market. Economists surveyed had forecast that 335,000 claims would be filed. The four-week moving average of jobless claims, which generally removes the volatility associated with the weekly swings in the report, fell by 4,000 to 332,000, the lowest level since November 2007.
Also released early in the trading session was consumer price data which showed that inflation remains in check. According to the Federal Reserve, CPI came in as expected up 0.2% in July. Excluding energy and food, the core consumer-price index also rose 0.2%, which was in line with expectations. Low levels of inflation can create headwinds for silver prices which seemed to shrug off the economic news.
Silver prices are poised to test resistance levels near the horizontal trend line that comes in at 23.12. A break of this level could lead to a test of target resistance near 25. Support on silver is seen near the 10-day moving average at 20.60. Momentum is strong with the MACD (moving average convergence divergence) index hitting its highest levels in the past 6-months.
Sorry. No data so far.