Silver prices rally as benchmark yields reach highs.
Silver prices continued to rally on Tuesday ahead of key economic inflation data. US benchmark yields reached highs, as the 10-year yield hit a three-year high at 1.96% and the 2-year yield hit a pre-pandemic high. Gold prices edged higher at peak levels despite a slight strengthening of the dollar. The German two-year yield declined, mounting pressure on the Euro and weighing on the EUR/USD. Investors await CPI data expected to be released on Thursday, providing insights into how much the Fed will increase rates.
On Tuesday, silver prices surged for the third consecutive trading session Support is now the former resistance level seen near the 50-day moving average at 22.81. Resistance is seen near the 200-day moving average at 24.44. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The fast stochastic is printing a reading of 44.74. Medium-term momentum turns positive as MACD (moving average convergence divergence) index moves toward a crossover buy signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses over the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in negative territory with an upward sloping trajectory. Negative momentum is decelerating, which points toward higher prices.