Silver prices rose on Monday for the 4e consecutive trading day as the dollar fell. US yields were mixed as the 2yr continued to climb and the yield curve flattened. Gold prices have also risen, supporting the precious metals complex. Most European markets were closed on Monday due to the Boxing Day celebration.
Silver prices have rallied and are ready to test target resistance near the 50 day moving average at $ 23.50. Support is near the 10 day moving average at 22.47. Short-term momentum turned positive as the Rapid Stochastic generated a cross buy signal. Prices are overbought as the Quick Stochastic prints a reading of 97, above the overbought trigger level of 80. Medium term momentum turned positive as the MACD (Moving Average Convergence Divergence) index generated a cross buy signal. The MACD histogram prints in positive territory with an upward trajectory that indicates higher prices.
Risk during the Santa Claus rally
The week between Christmas and New Years is often the week when risk appetite increases. This is called the Santa Claus Rally. Silver prices which are generally considered to correlate with signs of growth generally benefit during this period.