Silver Price Prediction – Silver Slides as Downtrend Perpetuates

Key Insights

• Silver prices eased and continue to consolidate.
• Treasury yields moved lower.
• Gold prices moved higher but failed to buoy silver.

Silver prices moved lower, bucking the trend as most precious metals complex moved higher. U.S. Treasury yields declined sharply, despite a hawkish Fed Chair testimony on the hill on Wednesday. The dollar moved lower but failed to buoy silver prices.

A Federal Reserve Chairman, Jerome Powell, was on the hill for his two-day Humphrey Hawkins testimony, which is mandated by Congress. The Central bank chief said he is determined to bring down inflation and can make that happen. Though Powell said he believes the economy is strong now, he acknowledged a recession could happen.

Technical Analysis

Silver prices edged lower, sliding through support near the 10-day moving average of 21.58. Additional resistance is seen near the 50-day moving average at 22.44.

The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD as a long-term downtrend is now considered in place.

Short-term momentum has turned negative as the fast stochastic generated 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 the positive territory with an upward sloping trajectory that points to higher prices.