Silver Prices Buck the Trend and Rally Above Key Resistance

Silver prices moved higher on Tuesday despite weakness in gold prices. Silver seemed to buck the trend despite a stronger dollar. U.S. Treasury yields surged. The U.S. interest rate markets are now pricing in 4-basis point hikes in 2022, with a 70% chance of a 4^th hike. The 10-year yield hit the highest level in more than 2-years above pre-pandemic highs. The 2-year yield curve also made a pre-pandemic high. The higher yields are putting downward pressure on some commodities, but those focused on growth seemed to benefit.

Technical Analysis

On Tuesday, silver prices moved higher and pushed above short-term resistance. The former resistance support is seen near the 50-day moving average at $23.15. Resistance is seen near the 200-day  moving average at 24.65. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are now overbought. The fast stochastic is printing a reading of 88, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).