Silver Prices Move Higher Amid Inflation Concerns and Uncertainty in Ukraine

Key Insights

• Silver prices edged higher as investors seek a shield from inflation pressures
• The dollar remained little changed as Biden is projected to add new sanctions against Russia 
• U.S. Benchmark Treasury yields rose and retreated slightly due to the Fed’s hawkish remarks
• Oil prices spiked amid Russia’s CPC pipeline disruption hurting Russian exports

Silver prices rose Wednesday as inflation concerns, a yield pullback, and geopolitical uncertainty cause investors to seek its safe-haven appeal. U.S. benchmark yields reach highs in today’s session. The U.S. 10-year yield hit its highest level since May 2019 but pulled back. Oil prices rose in volatile trading amid the CPC pipeline disruption, reducing Russian oil exports. The U.S. also is experiencing reduced oil stockpiles.

February U.S. new home sales dipped for the second consecutive month. The reading fell 2% to a seasonally adjusted rate of 772,000 units. Economists’ expectations were 805,0000. Although inventory has been at its highest level since 2008, increasing mortgage rates and rising housing prices led to the decline. 

Technical Analysis

Silver prices recovered from their overnight losses. During the European trading session, silver climbed above $25, pointing toward additional gains. However, if prices fall under $24.85, silver could slide under $24 levels, and the risk would be to the downside. 

Support is near the 200-day moving average near 23.84, a pivotal point for traders. The support-turned-resistance is seen near the 10-day moving average near $25.205. Short-term momentum turns positive as the fast stochastic moves toward a crossover buy signal.

The medium-term momentum is negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.