Silver Prices Slip as the U.S. Dollar Makes Gains

Key Insights

• Silver prices dipped as investors digest the Fed rate hike
• The dollar edged higher against other currencies
• U.S. Benchmark Treasury yields edged lower amid stalling Russia-Ukraine talks
• Oil prices rally due to uncertainty of oil supply

Silver prices slid on Friday, ending a two-day winning streak as the U.S. dollar strengthens. U.S. benchmark yields moved lower due to looming uncertainty surrounding the Russia-Ukraine conflict. Gold prices slide as the U.S. dollar extends gains. Oil prices increase due to potential supply shortages.

Existing home sales in February fell 7.2% month to month. The seasonally adjusted annualized rate was 6.02 million units compared to the expectations of 6.13 million units. Rising mortgage rates contributed to the 2.4% lower sales from February 2021. The tight supply of homes was a major factor in the drop in existing home sales. There was a 15.5% drop in supply of homes year over year. There is the least supply on the lower-end price range of homes, increasing competition and prices. 

Technical Analysis

Silver prices moved lower today in the wake of stalling Russia-Ukraine peace talks. The critical level is $25.00. If silver prices exceed this level, momentum could buoy prices to the $26 mark. The risk is to the upside. Sustained prices below $24.85 could signal additional losses. Support is near the 200-day moving average near 24.02. Resistance is seen near the 10-day moving average that comes in near $25.5. Short-term momentum is negative as the fast stochastic had a crossover sell 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.