Silver Prices Traded Flat Despite Easing Benchmark Yields and Dollar

Key Insights

• Silver prices remained little changed in today’s risk-off sentiment.
• Benchmark yields dipped several basis points amid rising inflation concerns.
• Oil prices recover from yesterday’s losses amid growing supply issues.

Silver prices declined today as the dollar and benchmark yields strengthened despite rising inflation concerns. Benchmark yields fell several basis points as investors sell out of bonds due to rising inflation concerns and reduced economic growth.

Gold prices traded flat as benchmark yields eased despite hawking monetary policy. Oil prices rebounded due to a shortage in US oil inventories and tight supply from Russia and Libya. Less demand and rising inflation signal that stagflation will persist in the economy.

Existing home sales declined by 2.7% from March 2021 to the seasonally adjusted annual rate of 5.77 million units. March home sales were down 4.5% The readings were taken as mortgage rates began to rise in January and February before skyrocketing in March.

Prices are rising because of the supply shortage of homes, which makes homes more expensive. This situation is making it difficult for homebuyers to purchase homes. 

Technical Analysis

Silver prices did not break out despite weaker yields and the dollar, trading just above the $25s level. Due to the hawkish Fed sentiment, silver has not made any big moves. The hawkish policy could elevate the dollar and yields and lead to downward momentum for silver.

Support is seen near the 50-day moving average of $24.89. Resistance is near the 10-day moving average of $25.30. Short-term momentum turned negative as the fast stochastic had a crossover sell signal.

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