Silver Prices Increased in Response to Growing Inflation Concerns

Silver prices increased today as inflationary pressures increased, indicating a bullish rise. The ten-year yield touched a three-year high near 2.849 percent as investors closely monitor inflation following last week's data and the Russia-Ukraine conflict.

Gold prices extend their gains, reaching a one-month high on inflation fears. Oil prices rose in tumultuous trading as limited global supply was worsened by Libyan production disruptions. Due to the scarcity of supply, even a slight disruption has a disproportionate influence on price fluctuation.

Homebuilder morale is being weighed down by rising mortgage rates and supply chain delays. Builder confidence in single-family houses declined two points to 77 in April.

At the beginning of March, the average 30-year mortgage rate was approximately 3.90 percent. It is now 5.15 percent, the highest level in more than a decade. Mortgage rates are increasing, which is contributing significantly to the increase in new and existing property prices.

Technical Evaluation

In Monday's trading session, silver prices jumped over the 200-day moving average. Prices broke over the $26.00 resistance level, indicating a possible bullish breakout with short-term gains. Support is located near the 10-day moving average, which is now at $25.16.

Near the $26.40 level, resistance is located. If prices break above that level, they may test the early March high above $27.00. The short-term momentum is bullish, as the fast stochastic generated a buy signal upon crossover.

The medium-term momentum is positive, as indicated by the histogram's positive correlation with the MACD (moving average convergence divergence). The MACD histogram's trajectory is positive, indicating an upward trend in price movement.