The precious white metal prices recently moved sideways, which formed a Doji day, which experts explain is a sign of indecisiveness in the market. Typically, the occurrence occurs when the commodity’s open and close prices are at the same levels.
What are the factors that affect the prices? AS per the experts, it is the weaker than expected U.S. ISM manufacturing report. The U.S. Yields moved lower following the findings of the ISM manufacturing report. However, they also believe that the declining yields offset the momentum. The gold prices have remained unchanged, copper prices moved lower, and this also weighed on the silver prices.
Support to silver prices was highlighted near the 10-day moving average set at 25.21. Moreover, resistance was seen near the July high at 25.80. The short-term momentum turned negative with the stochastic generating a crossover sell signal. Positive momentum was observed as the MACD (moving average convergence divergence) index generated a crossover buy signal. Typically, the scenario occurs when the MCAD line crosses above the MACD signal line.
In the meantime, the ISM survey slipped below 60, missing expectations. Plus, the ISM forward-looking new orders sub-index fell to a reading of 64.9 in July from 66.0 in June. It was the second consecutive decline in a row, and it is attributed to elevated shipping rates and lack of containers to move new parts to future destinations. Moreover, production at factories declined, which led to increased backlogs. Ultimately, without employees to augment the process, industry stalwarts expect the orders to slide further.