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Silver Prices Dip as Focus Remains on Fed Testimony and Russia-Ukraine Conflict

By:
David Becker
Updated: Mar 2, 2022, 16:40 GMT+00:00

Silver prices move lower as benchmark yields climb following Powell's testimony.

Silver Prices Dip as Focus Remains on Fed Testimony and Russia-Ukraine Conflict

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Silver prices moved lower in the wake of Fed Chair Powell’s testimony. US benchmark yields are slightly firmer, with the 10-year yield rallying to 1.84%. Brent crude prices climbed 6% to $111.59 a barrel. Powell reiterated that rate hikes would likely start this month despite geopolitical uncertainty. He will probably do a 25-basis point cut, and the Fed will reduce its balance sheet.

Technical Analysis

On Wednesday, silver prices declined as Powell’s testimony as Russia-Ukraine conflict remained in focus. Support is seen near the 50-week moving average near 24.54. Resistance is seen near the downward sloping trend line near 25.51. Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. The fast stochastic is printing a reading of 84.76. 

Medium-term momentum is positive as MACD (moving average convergence divergence) index had a crossover buy signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses over the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in positive territory with an upward sloping trajectory, pointing toward higher prices.

February ADP Private Sector Jobs Estimate Beats Expectations

In February, private sector companies in the US added 475,000 jobs. The Dow Jones estimate was 400,000. The reading indicates more robust job growth than losses and shows a positive outlook in the labor market. The decline in Covid-19 infections contributed to the overall improved economic situation. The leisure and hospitality sector accounted for the bulk of the month’s hiring gains.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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