Silver Prices Moved Higher Amid Growing Inflation Concerns

Key Insights

• Silver prices moved lower despite increased demand for safe-haven assets.
• The ten-year yield hit its highest level in three years.
• Oil prices rose in volatile trading as the focus is on supply concerns.

Silver prices climbed higher today amid rising inflation pressures, signaling a positive uptrend. The ten-year yield hit its highest level in three years near 2.849% as investors monitor inflation from last week’s data and the Russia-Ukraine War. 

Gold prices extend gains, hitting a one-month high on concerns over inflation. Oil prices moved higher in volatile trading as tight global supply is exacerbated by outages in Libya. In light of the tight supply, a minor disruption has an outsized effect on price movement.  

Rising mortgage rates and supply chain disruptions are weighing on homebuilder sentiment. In April, builder confidence for single-family homes fell 2 points to 77.

The average 30-year mortgage rate was roughly 3.90% at the beginning of March. Now it stands at 5.15%, the highest rate in over a decade. The climbing mortgage rates are a major factor in rising prices for new and existing homes.

Technical Analysis

Silver prices surged above the 200-day moving average in Monday’s trading session. Prices surpassed the $26.00 level, showing a potential bullish breakout with short-term gains. Support is seen near the 10-day moving average near $25.16.

Resistance is near the $26.40 level. A break above that might have prices test the early March high near $27.00. Short-term momentum is positive as the fast stochastic had a crossover buy signal.

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