Silver Prices Move Lower Amid Easing Geopolitical Tensions 

Silver prices slipped on Tuesday, falling 2% as the market monitors how aggressively the Fed plans to hike interest rates. The US benchmark ten-year yield surges to 2.03% amid cooling Russia-Ukraine tensions. Gold prices eased off their eight-month high as concerns ease regarding geopolitical tensions between Russia and Ukraine. The easing geopolitical tensions also weighed on the dollar but led to stronger gains in equities. 

Technical Analysis

On Tuesday, silver prices dipped as geopolitical tensions eased. Support is seen near the 10-day moving average at 23.10. Resistance is seen near the 200-day moving average at 24.35. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. The fast stochastic is printing a reading of 79.4. 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.

The January US PPI Surges Amid Mounting Inflation Pressures

Rising inflation pressures caused the PPI to rise to 9.7% year-over-year from January 2021 and accelerate by 1% in January 2022. The Dow Jones estimate for the month was 0.9%. The PPI measures the final demand for goods and services. The core PPI, which excludes food, energy, and trade services, accelerated by 0.9% for the month. Good prices outweighed service prices, rising 1.3% and 0.7%, respectively, which aligns with readings from the pandemic era.