Silver prices rally buoyed by a rally in gold
Silver prices moved higher on Monday for the 4th consecutive trading day as the dollar declined. U.S. yields were mixed as the 2-year continued to climb, and the yield curve flattened. Gold prices also moved higher, buoying the precious metals complex. Most European markets were closed on Monday due to the celebration of Boxing Day.
Silver prices rallied and are poised to test target resistance near the 50-day moving average at $23.50. Support is seen near the 10-day moving average at 22.47. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the fast stochastic prints a reading of 97, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
The week between Christmas and New Year is often when risk appetite increases. It’s known as the Santa Claus Rally. Silver prices that are generally considered correlated with signs of growth benefit typically during this period.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.