Silver Prices Retain a Bearish Tendency in the Face of a Stronger Dollar

Silver prices have continued to decline as the dollar strengthens. A rising dollar increases the cost of purchasing commodities like silver in foreign currencies, reducing demand. Benchmark yields were diverse but remained relatively stable in the face of persistent global market volatility.

Gold prices fell as the dollar strengthened to its greatest level since the pandemic's outbreak. The dollar is supported by the potential of aggressive rate hikes and the dollar's safe-haven allure in light of China and Europe's concerns.

Oil prices fell as the volatile market anticipated Chinese stimulus to boost oil consumption amid persistent geopolitical tensions.

Asia faces a stagflationary future, the IMF indicated, as commodity prices continue to rise and economic growth is anticipated to slow.

Pending home sales, a metric based on contract signings, fell 1.2 percent from the previous month for the fifth straight month. The Northeast had an increase in pending house sales, while the other three regions saw a decline. The index decreased 8.2 percent on a year-over-year basis.

The precipitous decrease in contract signings implies that rising mortgage rates have harmed people's ability to purchase a home, despite continued demand.

Technical Evaluation

Today's trading session saw silver prices fall to a two-month low of 23.20. Despite global risk and uncertainty in China, a stronger dollar has kept silver prices in check. Silver prices will continue to decline as Core PCE and US GDP support a 50-basis-point rate hike in May and at the following meetings of the Federal Reserve.

Silver prices will face downward pressure if they go below the $23.00 level, testing lows in the $22.00 range.

Near the November 2021 lows near $23.00, there is support. Resistance is indicated near the 200-day moving average's old support level of 23.84. Momentum is negative in the short term but has converged as the fast stochastic may have a crossing buy signal.

The medium-term momentum has shifted to the downside, as evidenced by the histogram's negative correlation with the MACD (moving average convergence divergence). The MACD histogram's trajectory is negative, indicating a downward trend in price movement.