Silver Rallies Rally Rising 1.5% for the Week

Silver prices rallied but settled off the trading session highs and finished the week up 1.5%. U.S. Yields were lower, allowing the curve to flatten. This week was the all-important Fed meeting. The Fed sees inflation and higher rates along with the risks of spreading the omicron variant of the coronavirus. Building permits rise.

Technical Analysis

Silver prices rebounded but settled off the session highs as it attempted to put in a bottom. Support is seen near the September lows at 22.10. Prices recaptured short-term resistance which is now supported near the 10-day moving average at 22.28. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum is poised to turn positive as the MACD (moving average convergence divergence) index is about to create a crossover buy signal.

Building Permits and Sentiment Rise

The National Homebuilders Associations said building permits climbed 3.6% to 1.71 million. The numbers are well above respective estimates of 1.56 million and 1.66 million. Builder sentiment in the single-family housing market rose one point to 84 in December.