Silver rose Friday after Fed Chair Powell’s speech in Jackson Hole. The Fed chairman stuck to his motto that inflation is transitory. The dollar fell as US Treasury yields fell, consumer confidence declined and inflation expectations fell. Powell told markets that the Fed is likely to begin phasing out its bond-buying program sometime in 2021.
Silver prices rose on Friday and did not come close to the breakdown level of 24.42. The 200-day moving average of 25.85 is showing additional resistance. Support is seen near the 10-day moving average at 23.61 and then near the August low at 22.10. Short term momentum has turned positive due to the fast stochastic crossover buy signal generated. Medium-term momentum has turned positive as the MACD (Moving Average Convergence Divergence) index generated a crossover buy signal. This buy signal occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day moving average of the MACD line).
Increase in consumer income
According to the Commerce Department, consumer income rose 1.1% in July, the biggest jump since March. This spring was primarily due to an expanded child tax credit included in Congress’ $1.9 trillion pandemic relief package. Consumer spending growth slowed to 0.3% last month, down from the 1.1% increase in spending in June.
This article was originally posted on FX Empire