Key Insights
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Silver prices edged higher.
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Treasury yields reversed course.
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The dollar moved lower buoying gold and the precious metals complex.
Silver prices moved higher above short-term resistance. Gold price rose, buoying the entire precious metal complex. Imports continued to decline while exports rose according to the latest Trade Deficit report from the Commerce Department.
Benchmark yields declined, weighing on the greenback, helping to buoy silver prices.
Nobody seems to want to stay home and buy anything. This phenomenon is reflected in today’s U.S. trade deficit which narrowed in April as imports fell sharply, reflecting a moderating appetite for foreign goods and materials from American consumers and businesses. Target announced today that it was marking down its products and reducing orders for consumer goods. There has been a switch to the services as everyone now wants to go on vacation.
Technical Analysis
Silver prices moved higher. Support is seen near the 10-day moving average of 21.99. Resistance is seen near the 50-day moving average at 23.13.
The 50-day moving average remains crossed under the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.
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 negative territory, which reflects a downward trend in price movement.
This article was originally posted on FX Empire