Silver Price Prediction – Silver prices remain little changed ahead of the key inflation reading

Key Insights

• Silver prices stabilized as benchmark yields dipped ahead of inflation data.
• Treasury yields pulled back amid rising inflation and slower growth.
• Oil prices continued to fall amid demand concerns in China and weaker economic growth.

Silver prices held steady as the dollar eased and yields fell sharply. The dollar edged lower against other major currencies. Benchmark yields eased today in the wake of the FOMC meeting as the Fed was less aggressive than the market priced in. The ten-year yield dipped below 3% after being up 23 basis points yesterday. 

Gold prices strengthened as the dollar eased. Investors bought gold as US inflation data released tomorrow could impact the Fed’s monetary policy. Oil prices continue to face downward pressure amid China’s lockdowns and a stronger dollar that made oil more expensive to holders in other currencies.

The embargo on Russian oil has been delayed as Eastern European members have asked for exemptions and concessions.

The NFIB Small Business Economic Trends came in at 93.2, which was the same as the previous month. This reading, which indicates US small business confidence, was below the 48-year average of 98.

This data signals that small businesses are struggling to deal with mounting inflation pressures. Small businesses are dealing with rising labor costs and a labor shortage, increasing their economic struggles.

Inflation data that will be released on Wednesday will likely impact the Fed policy decision at the next meeting.

Technical Analysis

Silver prices remain below the $22 level. A sustained break below the $22 mark will signal further downside and favor bearish traders for AG/USD. Further selling may lead silver to test the December low near $21.40.

The metal is on track to see additional losses near the $21 level and head to the key psychological mark of $20.

Support is seen near the December 15th low of 21.49. Resistance is seen near the 10-day moving average near the 10-day moving average of 22.57. Short-term momentum is negative as the fast stochastic had a crossover sell signal.

The medium-term momentum turned negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.