Silver prices whipsawed and moved lower.
Treasury yields rebounded.
The dollar moved higher generating headwinds for silver prices.
Silver prices moved lower despite a rebound in gold prices. The dollar rose as consumer credit rose to a record high. U.S. Treasury yields continued to rebound, with the 2-year testing recent highs.
U.S. consumer credit rose in April, following a record jump in March, driven by the continued strength of American consumers. According to the Federal Reserve borrowing through credit increased by $38.1 billion from March after a downwardly revised $47.3 billion gain in the prior month. Higher prices are not incorporated into the credit figures. The median forecast called for a $35 billion advance. The figures aren’t adjusted for inflation.
Silver prices whipsawed and moved lower. Support is seen near the 10-day moving average of 22.09. Resistance is seen near the 50-day moving average at 23.08.
The 50-day moving average remains crossed under the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.
Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.
The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects a downward trend in price movement.
This article was originally posted on FX Empire
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