Silver Price Prediction – Silver prices traded flat following retail sales data 

Key Insights

• Silver prices remained little changed. 
• Treasury yields rose following retail sales data.
• Oil prices rose to a multi-week high on the EU plan for the Russian oil embargo.

Silver prices traded flat on Tuesday higher despite rising yields. However, a hawkish Fed means that silver prices will continue to face downward pressure. The dollar fell from two-year highs as analysts reduce hawkish Fed expectations.

Benchmark yields rose following retail sales data in line with expectations. The ten-year yield slid by 11 basis points today. 

Gold prices recovered as the dollar eased from its two-month high. Oil prices increased to seven-week highs on the EU push for the embargo on Russian oil. This situation would significantly cut supply.

US Retail Sales came out as expected. Retail sales increased by 0.9% compared to the expected increase of 1%. Fed Chair Powell stated his plan to continue to raise rates until inflation was under control. 

Technical Analysis

Silver prices consolidated near the 10-day moving average, attempting to break the downward trend. Prices remain above the key $21 level. However, XAG/USD faces a bearish outlook amid Fed expectations for rate hikes. 

Support is seen near the 2019 lows near the $19.60s region. Resistance is seen near the 10-day moving average near the 10-day moving average of 21.82. Short-term momentum turned negative as the fast stochastic might have 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.