Silver prices fell on Thursday following the Fed meeting report. The dollar rose but couldn’t open. US yields rose across the yield curve after and with the 2-year yield hitting the highest levels since March 2020. The weaker-than-expected ISM Services report did little to soften yields .
Silver prices fell on Thursday as yields continued to rise. Support is seen near December lows at 21.69. Resistance is near the 10 day moving average at $ 22.90. Short term momentum turned negative as the Fast Stochastic generated a cross sell signal. Prices are oversold as the Quick Stochastic shows a reading of 12, below the oversold trigger level of 20. Medium term momentum is about to turn negative as the MACD (Moving Average Convergence Divergence ) is about to generate a cross sell signal. This scenario occurs when the MACD line (the 12 day moving average minus the 26 day moving average) crosses below the MACD signal line (the 9 day moving average of the MACD line).
Fed minutes push up silver prices
The minutes of the Fed meeting on Wednesday were a huge catalyst in the silver market. The Fed minutes show that participants are more hawkish than expected and were potentially behind the curve as inflation accelerated faster than expected. This situation could lead to a rate hike as early as March, which is now integrated into the interest rate market.