Silver Price Prediction – Prices Rise Following Fed Decision
Silver prices surged higher in the wake of the Fed decision as the dollar eased and U.S. yields continued to grind downward. The Fed kept interest rates on hold, which put pressure on the greenback. The Fed also said if the recovery in the United States continued to remain on track, they would consider removing some accommodation. The risk-off trade took as stocks rallied for a second consecutive trading session, allowing silver prices to gain traction as the dollar finally eased. Gold prices rebounded for a third straight trading session allowing silver prices to gain a toe hold.
Technical analysis
Silver prices surged higher, poised to test resistance near the 10-day moving average at $23.23 Target support is seen near the September lows at 22.03. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic is printing a reading of 36, below the oversold trigger level of 18, which reflects accelerating positive momentum.
Housing Sales Fell
According to the National Association of Realtors, sales of previously owned dropped by 2% in August to an annualized rate of 5.88 million units. Sales were 1.5% lower than August 2020 for the first annual decline in 14 months. The supply of homes for sale fell 1.5% month to month to 1.29 million at the end of August. Compared with August 2020, inventory is down 13. At the current sales pace there was a 2.6-month supply. Tight supply pushed the median price of an existing home sold in August to $356,700, an increase of 14.9% from August of 2020.
This article was originally posted on FX Empire
