Silver Price Prediction – Silver prices faced downward pressure despite rising inflation concerns

Key Insights

Silver prices moved lower.
Treasury yields continue to slide on risk-off sentiment.
Oil prices stabilize despite the increased likelihood of the Russian embargo deal.

Silver prices traded lower despite softening 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 faced downward pressure as it is headed for its worst week since mid-February.

Benchmark yields continued to fall slid amid the market sell-off. The ten-year yield declined by 2 basis points today. Stocks fell amid investors’ heightened concerns over the potential recession.

Oil prices are steady due to the easing of restrictions of Chinese lockdowns offsetting supply concerns from the EU embargo on Russian oil where the deal is getting closer.

The economic calendar was light on Friday. However, investors become more concerned about slowing economic growth and recession. Inflation concerns weighed on earnings this week. High prices are deterring consumer spending and leading to slower growth.

The softening dollar and increasing gold prices signal investors’ fears about the direction of the market. The dollar was lifted amid geopolitical uncertainty as a safe haven, but treasury yields adjusting for inflation led to weakness in the dollar.

Technical Analysis

Silver prices ease from yesterday’s one-week highs near the $22 level. XAG/USD could not break above $22. A pullback in prices might indicate downward pressure if it breaks below the $21.40 level. A larger break below that level might shift bias toward a bearish outlook.

Support is seen near the 10-day moving average of $21.47. Resistance is seen near the $22 level. Short-term momentum turns negative as the fast stochastic might have a crossover sell signal.

The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in positive territory, which reflects an upward trend in price movement.