Silver Prices Retreated Despite Growing Concerns About Inflation

Today, silver prices fell, attempting to interrupt a six-day winning streak. Despite the decline, silver prices should continue to be in high demand due to rising inflation fears and the Russia-Ukraine conflict. Inflation-adjusted benchmark rates continued to increase. Gold and silver prices continue to act as an inflation hedge.

Oil prices fell as supply concerns grew. While global supply constraints remain an issue as a result of a prospective Russian oil shutdown, the EIA said this week that member states would release strategic reserves.

Retail sales in the United States increased by 0.5 percent in March, despite rising inflation, and are up 6.9 percent year over year. Gas station revenues increased the most, as retail sales are not inflation-adjusted. The most significant declines occurred in internet sales, which fell by 6.4 percent.

Initial unemployment claims increased to 185,000, up 18,000 from the prior week. Despite the fact that export prices rose faster than import prices, the US trade imbalance widened. Imports have been impacted by inflation, with prices increasing by 2.6 percent and 12.6 percent month over month.

Technical Evaluation

Silver prices dropped after six consecutive positive trading sessions. Despite this, silver prices have continued to rise as a hedge against global inflation and as a result of the Russia-Ukraine conflict. Support is located near the $24.9 ten-day moving average. Resistance is located near the March 24th high of approximately $25.845. A break to the upside would take us to the $26.00 level. Short-term momentum shifted negative as the fast stochastic crossed below the zero line, signaling a sell signal.

As the histogram prints positively with the MACD, the medium-term momentum turns positive (moving average convergence divergence). The MACD histogram's trajectory is positive, indicating an upward trend in price movement.