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U.S. Special Envoy for Syria: Met with Jordanian Deputy Prime Minister and Minister of Foreign Affairs and Diaspora Affairs Ayman Safadi. Minister Safadi and I discussed the latest developments in the Syrian Arab Republic in the context of our ongoing cooperation.On January 10th, in response to US Commerce Secretary Howard Lutnicks comments that the failure to reach a trade agreement with India was due to Indian Prime Minister Modi not calling US President Trump, India stated on the 9th that Lutnicks statement was "inaccurate." Earlier on the 9th, in an interview with the US podcast "The Roundup," Lutnick blamed the stalled US-India trade agreement negotiations on Indian Prime Minister Modi, saying, "Everything was ready, and I (to the Indian side) said you have to get Modi to call the president (Trump). They were uncomfortable doing that. So, Modi didnt call."January 10th - On January 9th, a provincial financial system work conference was held in Jinan, Shandong Province. The conference emphasized the need for effective and orderly risk prevention, steady progress in the reform of small and medium-sized financial institutions, prevention and crackdown on illegal financial activities, and coordinated resolution of various intertwined risks. It stressed the importance of consolidating and strengthening financial supervision, strictly controlling market access, rigorously enforcing regulations, and holding those responsible accountable. The conference also called for all-out efforts to promote high-quality development, expand and improve the financial sector, fully utilize the moderately loose monetary policy, implement the "Ten-Hundred-Thousand" plan for cultivating listed companies, and strengthen financial support for key areas such as expanding domestic demand, technological innovation, and small and micro enterprises.U.S. Secretary of State Marco Rubio: The United States supports the courageous Iranian people.On January 10th, a research report from Founder Securities stated that the December non-farm payroll data was mixed, with the US job market generally showing a mild downward trend, but the unemployment rate showed marginal improvement, giving the Federal Reserve more reason to wait and see in January. Combined with the Supreme Courts potential declaration that the IEEPA tariffs are unconstitutional, this may be a short-term positive for US stocks and the US dollar, but a negative for US Treasuries. Data on new jobs, job openings, and hourly wage growth indicate that the US job market remained relatively weak in December, but the marginal decline in the unemployment rate was one of the few bright spots. Looking at interest rate futures and US Treasuries, the market priced in a no-rate-cut by the Fed in January, with a possible rate cut as early as June. Meanwhile, the Supreme Courts potential declaration that the IEEPA tariffs are unconstitutional means that economic expectations may improve marginally, inflationary pressures may weaken, but the fiscal deficit may worsen. With the Fed in no hurry to cut rates and tariffs easing, US Treasuries face many unfavorable factors in the short term and are likely to remain at high levels. US stocks will benefit from the AI boom and reduced tariff disruptions, especially in sectors affected by tariffs such as consumer staples and industry, which are more resilient.

Silver Prices Continue to Fall as the Dollar and Treasury Yields Extend Their Gains

Drake Hampton

Apr 20, 2022 09:57

Silver prices fell Wednesday as the currency and benchmark rates gained in the face of mounting inflation fears. The ten-year yield hit its highest level since 2018 near 2.93 percent Thursday, owing to a bond sell-off triggered by rising inflation. This circumstance has boosted yields.

 

Gold prices declined as the dollar rose in anticipation of additional Federal Reserve rate hikes to tackle soaring inflation. Oil prices fell in erratic trading despite an ongoing global supply constraint, as the IMF raised inflation concerns and lowered economic growth predictions.

 

Housing starts unexpectedly increased by 0.3% in March to 1.793 million seasonally adjusted units. Last month, building permits increased by 0.4 percent to 1.873 units on an annual basis.

 

Increased mortgage rates and supply chain delays are making it more difficult for buyers to purchase a home. However, the lack of available homes will continue to support housing starts this year.

Technical Evaluation

Silver prices gave back their gains from yesterday, falling to the low $25s. Silver prices are reverting lower despite increased inflation and global supply constraints caused by the Russia-Ukraine conflict. This could be a temporary reversal brought either by investors buying the dip or a change to negative momentum.

 

Support is located near the $24.85 50-day moving average. Near the $26.40 level, resistance is located. Short-term momentum shifted negative as the fast stochastic crossed below the zero line, signaling a sell signal.

 

The medium-term momentum is good, but the histogram prints favorably with the MACD (moving average convergence divergence). The MACD histogram is in positive territory but is trending downward, reflecting the downward trend in price movement.

 

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