Silver price for a second consecutive trading session. Silver will end the month up 1.8% but close 2021 down almost 12%. The dollar eased which continued to support silver prices. Gold prices also rose, helping the entire precious metals sector to gain ground. US yields fell across the curve. The rising greenback and rising short-term yields have weighed on silver prices throughout 2021.
On Friday, silver prices rallied for a second straight trading session and are poised to test higher levels. Resistance is seen near the 50-day moving average at $23.44. Support is near the 10-day moving average at 22.82. The short-term momentum turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the Fast Stochastic shows a reading of 90, above the overbought trigger level of 80. The medium-term momentum turned positive as the MACD (moving average convergence divergence) index generated a signal cross-buy. 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 sloping trajectory that indicates higher prices.
Chicago PMI sub-indices are mixed
The last of the regional PMI indices was released in 2021. Among the top five indicators, production and new orders and were higher. Order books, employment and supplier deliveries fell during the month. The Chicago Purchasing Managers Index rose to 63.1 in December. This rise in the total index cancels out last month’s decline.
This article originally appeared on FX Empire