Silver Price Prediction – Silver prices rise amid lingering economic growth and inflation concerns

Key Insights

• Silver prices trade higher ahead of Fed Chair Powell’s remarks on Tuesday.
• Treasury yields rise as the dollar falls. 
• Oil prices tumble as Shanghai prepares for reopening. 

Silver prices traded higher as yields rise and the dollar falls. Gold prices rallied on Monday as a safe haven for investors while the dollar faced weakness. The dollar faced downward pressure amid slower growth prospects and possible movement toward recession.

Benchmark yields rose as equities rallied today. The ten-year yield increased by 3 basis points today. Oil prices fell as Shanghai lockdowns are coming to an end, increasing demand for oil. The end of lockdowns offsets supply concerns from a potential ban on Russian oil.

The economic calendar was light on Monday. Focus remains on Fed Chair Powell’s remarks tomorrow and key economic data including PCI and first-quarter GDP released this week. Investors remain concerned about potential recession and slowing economic growth.

Technical Analysis

Silver prices pull back from the $22 level earlier today but move higher due to the sharp pullback in the dollar. The movement of the dollar index will determine the direction of XAG/USD.

This week’s key economic data will determine if slower growth will underpin XAG/USD and give it a greater bullish outlook The data could cause the precious metal to stabilize above the $22 level.

Support is seen near the 10-day moving average of $21.48. Resistance is seen near the $22 level. Short-term momentum might turn 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.