Silver Prices Move Higher Amid Strong Economic Data

Silver prices climbed higher as investors monitored the Russia-Ukraine conflict. US benchmark yields remain little changed, with the 10-year yield hovering near 1.85%. Palladium rises to its 7-month high on concerns over supply. The US dollar ascends on strong jobs data and Fed’s testimony. The Fed will likely do a 25-basis point rate hike on March 15-16. 

Technical Analysis

On Thursday, silver prices rose over commodity supply concerns. Support is seen near the 10-week moving average near 23.48. Resistance is seen near the 50-week moving average near 24.55. Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. The fast stochastic prints a reading of 87.4, exceeding the overbought trigger level. 

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.

US Trade Deficit Beats Expectations in January

In January, the US trade deficit jumped to 7.1% to $107.6 billion and hit an all-time high for the second consecutive month. The deficit increased from a revised $100.5 billion in December. The reading points to continued strength in manufacturing. The US economy rebounded from the pandemic while other countries are lagging.