Silver Prices Remain Confined as Focus Remains on Russia-Ukraine War 

Key Insights

• Silver prices consolidate after Friday’s losses 
• The Dollar remained little changed against other currencies
• U.S. Benchmark Treasury yields jumped 
• Oil prices rally due to Russian oil ban implications

Silver prices recovered to $25 on Monday from Friday’s losses as commodity prices surge higher. U.S. benchmark yields climb higher as investors expect elevated inflation due to geopolitical uncertainty and economic growth. Gold prices move higher as investors consider the appeal of the safe-haven asset. Oil prices jump due to E.U. nations considering joining the U.S. in the Russian oil ban after a weekend attack on Saudi facilities.

No economic data was released on Monday. Fed Chair Powell’s made comments about the Fed’s monetary policy. His insights come less than a week after the Fed’s first rate hike. The Fed signaled its plans to raise rates at its remaining six meetings this year. It raised expectations for inflation and trimmed its economic growth expectations for the year.

Technical Analysis

Silver prices oscillated to start the week and remained in a narrow trading range after Friday’s losses. The critical level is $25.00 to determine silver’s next directional move. The risk is to the upside. Sustained prices below $24.85 could signal additional losses, while sustained strength will be seen as bullish and hurdle near the $26.40 area. 

Support is near the 200-day moving average near 24.01. The support-turned-resistance is seen near the 10-day moving average of $25.45. Short-term momentum turns positive as the fast stochastic moves toward a crossover buy signal.

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