Silver Prices Rally as Biden Announces Sanctions on Russia

Silver prices surged on Wednesday as Biden announced sanctions on Russia. US benchmark yields are firmer, as the 10-year yield increased to 1.97%. Gold prices rose above $1900 due to as the possibility of supply issues. Rising tensions have increased oil and gasoline prices, leading to higher inflation. The chance of a 50-basis point rate hike in March has become more likely.

Technical Analysis

On Wednesday, silver prices moved higher. Support is seen near the 10-day moving average at 23.79. Prices broke through former resistance near the 200-day moving average. Resistance is seen near a downward sloping trend line near 24.55. Short-term momentum turns negative. The fast stochastic prints a reading of 97.93, exceeding the overbought trigger level of 80.

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 MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in positive territory with an upward sloping trajectory.

Weekly Mortgage Applications Fall to Pre-Pandemic Lows

MBA mortgage applications tumbled to over their two-year lows last week. The Fed’s decision to hike rates in March has led to rising mortgage rates, reducing demand for loans to purchase homes and refinance activity. The MBA’s Market Composite Index, a measure of the volume of mortgage loan applications, fell 13.1% from last week. This reading was the lowest since December 2019.