Silver Prices Rally Amid Day Six of Russia Invasion of Ukraine
Silver prices climbed higher on Tuesday as companies reduced their sales presence in Russia. US benchmark yields fell sharply as the 10-year yield dipped to 1.7%. Investors look to government bonds, driving yields higher. Palladium rose over 9% due to supply concerns, and oil prices spiked 11%. Investors monitor Fed testimony to indicate how sanctions could affect policy.
On Tuesday, silver prices surged as markets remained fragile. Support is seen near the 10-day moving average at 24.22. Resistance is seen near the downward sloping trend line near 25.51. Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. The fast stochastic is printing a reading of 89.44.
Medium-term momentum is positive as MACD (moving average convergence divergence) index had a crossover buy signal. The MACD line (the 12-day moving average minus the 26-day moving average) crosses over the signal line (the 9-day moving average of the MACD line). The MACD histogram prints in positive territory with an upward sloping trajectory, pointing to higher prices.
February Manufacturing PMI Indicates Economic Growth
The Manufacturing PMI, which measures the activity level of purchasing managers in the manufacturing sector, rose to 58.6%, one percentage point from January. The forecast was 57.5. This reading indicates an expansion in the overall economy for the 21st month in a row. The New Orders Index registered 61.7%, increasing 3.8% points compared to a January reading of 57.9%.