Silver Price Forecast – Silver prices face downward pressure amid more hawkish Fed

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key ideas

  • Silver prices are under downward pressure.
  • Treasury yields fell following the massive sell-off in stocks.
  • Oil prices fall as US companies plan to increase supply.

Money prices deal with bearish momentum on a stronger dollar and more aggressive monetary policy from the Fed. The dollar rallies to two-decade highs as investors place bets on the dollar. Benchmark yields erased gains as investors piled into bonds as stocks sold.

The Dow Jones and Nasdaq saw huge daily declines as inflation worries grew following earnings reports. The ten-year yield slipped 9 basis points today. Oil prices are falling as US companies plan to increase production, offsetting supply problems related to the Russian oil embargo.

April housing starts fell 0.2% amid rising mortgage rates. The 30-year loan rose to 5.3% last week from 2.94 a year ago. Soaring inflation combined with high material prices weighed on the housing market.

Philadelphia Fed Chairman Harker said the Fed will make two 50 basis point hikes in June and July at FOMC meetings.

Technical analysis

Silver prices were unable to break the $21.50 level despite the risky sentiment. Prices remain above the key $21 level. However, XAG/USD faces a bearish outlook amid Fed rate hike expectations.

Support is near the $21.00 level. A break of that would leave support at the May 16th low at 20.84. Resistance is seen near the 10-day moving average near the 10-day moving average of 21.49.

The short-term momentum could turn positive as the Fast Stochastic could have a crossover buy signal.

The medium-term momentum turns positive as the histogram prints less negatively with the MACD (Moving Average Convergence Divergence). The trajectory of the MACD The histogram is in positive territory, reflecting an upward trend in price movement.


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