Silver Prices Hold Steady As the US and Europe Increase Sanctions

Silver prices stabilized on Monday as Europe and the US increase sanctions on Russia. US benchmark yields slid as the 10-year yield dipped 12 basis points. Palladium prices jump as sanctions create concerns about a supply deficit. Gold prices rose 1.8% as the metal remains a store of value. Investors will monitor Fed Chair Jerome Powell’s testimony this week to indicate how the Russia-Ukraine crisis will impact rate hike plans.

Technical Analysis

On Monday, silver prices held steady as Russia and Ukraine had their first round of talks. Support is seen near the 10-day moving average at 24.00. Resistance is seen near the 50-week moving average near 24.53. Short-term momentum turns negative as the fast stochastic generates a crossover sell signal. The fast stochastic is printing a reading of 65.67. 

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 Chicago PMI Below Expectations

The Chicago PMI Barometer fell 8.9 points from 65.2 to 56.3 in February. The consensus was 63. It is the first time it has slid since November 2021, suggesting a slowdown in economic activity. All five leading indicators moved lower, lead lower by new orders and supplier deliveries. New orders fell 12.3 points, slowing to a 20-month low of 53.0 points.