Silver Price Forecast – Silver prices have come under downward pressure despite rising inflation concerns


key ideas

  • Silver prices have fallen.
  • Treasury yields continue to slide on risk aversion sentiment.
  • Oil prices are stabilizing despite the increased likelihood of the Russian embargo agreement.

Money prices was trading lower despite falling yields and the dollar. Gold prices traded flat but were set for their first weekly gain since mid-April as the dollar eased. The dollar came under downward pressure as it headed for its worst week since mid-February.

Benchmark yields continued to fall amid the market sell-off. The ten-year yield fell 2 basis points today. Shares fell amid heightened investor concerns over the potential recession.

Oil prices are stable due to the easing of restrictions from Chinese blockades offsetting supply problems related to the EU embargo on Russian oil where the agreement is approaching.

The economic calendar was light on Friday. However, investors are more worried about slowing economic growth and recession. Inflation fears weighed on earnings this week. High prices discourage consumer spending and slow growth.

The weakening dollar and rising gold prices signal investor fears about the direction of the market. The dollar was elevated amid geopolitical uncertainty as a safe haven, but inflation-adjusting Treasury yields led to dollar weakness.

Technical analysis

Silver prices are declining from yesterday’s 1-week highs near the $22 level. XAG/USD could not break above $22. A pullback in price could indicate downward pressure if it breaks below the $21.40 level. A larger break below this level could shift the bias towards a bearish outlook.

Support is near the 10-day moving average of $21.47. Resistance is seen near the $22 level. The short-term momentum turns negative as the Rapid Stochastic might have a cross sell signal.

The medium-term momentum turns positive when the histogram prints positively 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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