Silver Price Prediction – Prices are whipping and moving lower

Important Findings

  • Silver prices whipped and moved lower.

  • Treasury yields rallied.

  • The dollar moved higher creating headwinds for silver prices.

Silver prices fell despite a recovery in gold prices. The dollar rose as consumer credit surged to a record high. US Treasury yields continued to rally, with the 2-year mark testing recent highs.

US consumer credit rose in April after a record jump in March, driven by continued strength in American consumers. Borrowing rose $38.1 billion from March, according to the Federal Reserve, after posting a downwardly revised gain of $47.3 billion the previous month. Higher prices are not included in the loan figures. The median forecast called for an advance of $35 billion. The figures are not adjusted for inflation.

Technical Analysis

Silver prices whipped and moved lower. Support is seen near the 10-day moving average at 22.09. Resistance is seen near the 50-day moving average at 23.08.

The 50-day moving average remains crossed below the 200-day moving average, posing headwinds for XAG/USD and suggesting downside momentum.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum turns positive as the histogram with the MACD (Moving Average Convergence Divergence) prints positive. The MACD-Histogram trajectory is in the negative territory, which reflects a downtrend in the price action.

This article was originally published on FX Empire

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