Silver Prices Dip as Russia-Ukraine Tensions Escalate

Silver prices moved lower on Tuesday as Putin plans to send troops into Ukraine, viewed as the start of the war. US benchmark yields held steady, as the 10-year yield remains near 1.94% after siding below 1.90%. Equities fell as investors continue to monitor the crisis. Gold prices remain near highs as demand for the safe-haven metal remains high among investors as tensions rise. 

Technical Analysis

On Tuesday, silver prices dipped as Russia-Ukraine tensions surge. Support is seen near the 10-day moving average at 23.68. Resistance is seen near the 200-day moving average at 24.26. Short-term momentum turns negative as the fast stochastic may generate a crossover sell signal. The fast stochastic is printing a reading of 95.64, exceeding the overbought trigger level of 80. 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.

IHS Markit Flash PMI Rebounded in February

On Tuesday, IHS Markit released its Flash PMI, which tracks manufacturing and services sectors. The reading increased sharply to 56.0 from 51.1 in January. A reading above 50 indicates growth in the private sector. The significant improvement has been caused by increased travel, more availability of raw materials, and more employees returning from sick leave. The data improvements parallel the acceleration in business activity.