Silver Prices Buck the Trend and Rally Above Key Resistance
Silver prices moved higher on Tuesday despite weakness in gold prices. Silver seemed to buck the trend despite a stronger dollar. U.S. Treasury yields surged. The U.S. interest rate markets are now pricing in 4-basis point hikes in 2022, with a 70% chance of a 4th hike. The 10-year yield hit the highest level in more than 2-years above pre-pandemic highs. The 2-year yield curve also made a pre-pandemic high. The higher yields are putting downward pressure on some commodities, but those focused on growth seemed to benefit.
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Technical Analysis
On Tuesday, silver prices moved higher and pushed above short-term resistance. The former resistance support is seen near the 50-day moving average at $23.15. Resistance is seen near the 200-day moving average at 24.65. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are now overbought. The fast stochastic is printing a reading of 88, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).