Silver Prices Move Higher Amid Strong Retail Sales Data

Silver prices moved higher on Wednesday as the market focused on geopolitical tensions and stronger-than-expected economic data. The US benchmark ten-year yield remains little changed near 2.03% amid strong retail sales numbers. Gold prices edged higher, holding below their eight-month high as the safe-haven asset holds its appeal as a hedge against inflation. The dollar dips ahead of the release of Fed minutes from January and easing geopolitical tensions. 

Technical Analysis

On Wednesday, silver prices edged higher as geopolitical tensions eased. Support is seen near the 10-day moving average at 23.2. Resistance is seen near the 200-day moving average at 24.33. Short-term momentum turns positive as the fast stochastic moves toward generating a crossover buy signal. The fast stochastic is printing a reading of 74.82. 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 but decelerating prices.

US January Retail Sales Accelerated More Than Expected

In January, retail sales increased 3.8%, beating the Dow Jones estimate of 2.1%. Retail sales declined by 2.5% in December. These readings reflect rising inflation and rising consumer demand. Online shopping contributed most to the substantial gains, as non-store retailers saw gains of 14.5%. Food and drink establishments saw a decline of 0.9% in January.