Silver Price Forecast – Silver prices have come under downward pressure despite rising inflation concerns

Important Findings

  • The silver price moved down.
  • Government bond yields continue to slide on risk-off sentiment.
  • Oil prices are stabilizing despite the increased likelihood of the Russian embargo agreement.

Silver Prices despite falling yields and the dollar traded lower. Gold prices traded flat but were set for their first weekly gain since mid-April as the dollar weakened. The dollar has been under downward pressure as it heads for its worst week since mid-February.

Benchmark yields continued to fall amid the market sell-off. The 10-year yield fell 2 basis points today. Shares fell as investors grew concerned about the potential recession.

Oil prices are steady as Chinese lockdown restrictions have been eased, offsetting supply concerns over the EU embargo on Russian oil as the deal draws closer.

The economic calendar was bright on Friday. However, investors are increasingly concerned about the slowdown in economic growth and the recession. Inflation concerns weighed on gains this week. High prices deter consumers and slow growth.

The weakening dollar and rising gold prices signal investors’ concerns about the direction of the market. The dollar was raised as a safe haven amid geopolitical uncertainty, but inflation-adjusted Treasury yields led to dollar weakness.

Technical Analysis

Silver prices are falling off yesterday’s one-week highs near $22. XAG/USD failed to break above $22. A decline in price could indicate downside pressure if it breaks below $21.40. A larger break below this level could shift the bias to a bearish outlook.

Support is seen near the 10-day moving average of $21.47. Resistance is seen near the $22 level. Short-term momentum turns negative as the fast stochastic may have a crossover sell signal.

Medium-term momentum turns positive as histogram plots positive MACD (Moving Average Convergence Divergence). The trajectory of MACD The histogram is in positive territory, reflecting an uptrend in price action.

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