Silver prices fell on the first trading day of 2022 as the dollar rallied and yields rose. Riskier assets such as stocks sending the 2-year yield to the highest level since March 2020. This week is chock-full of US data anchored in US jobs reports. Historically, silver has outperformed in January.
On Monday, silver prices fell sharply. Support is near the 10 day moving average at 22.85. Resistance is seen near the 50 day moving average at $ 23.44. Short term momentum turned negative as the Fast Stochastic generated a cross sell signal. Prices have moved out of overbought territory. Medium-term momentum turned positive as the MACD (Moving Average Convergence Divergence) index generated a cross buy signal. This scenario occurs when the MACD line (the 12 day moving average minus the 26 day moving average) crosses above the MACD signal line (the 9 day moving average of the MACD line). The MACD histogram prints in positive territory with an upward trajectory that indicates higher prices.
Seasonality of money
Silver prices generally register positive returns in January. Over the past 5 years, silver prices have risen 100% of the time in January, increasing 3.5%. Over the past decade, silver prices have risen 80% of the time in January for an average gain of 4.1%. Over the past 20 years, silver prices have increased 75% of the time for an average gain of 3.7%.