Silver Prices Rise as Fed Chair Powell Testifies

Silver prices moved higher for a third consecutive trading session. The upward rebound in silver prices came as gold also moved higher. The dollar was lower, which helped buoy the yellow metal. U.S. Treasury yields were slightly higher, but the 2-year yield settled near the lows of the trading session. Fed Chair Jerome Powell spoke today in front of the Senate as part of the confirmation process for a second term. According to the Federal Reserve Bank of New York, Consumers expect higher inflation. On Wednesday, the Labor Department will release its Consumer Price Index.

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Technical Analysis

On Tuesday, silver prices rebound despite higher yields. Resistance is seen near the 10-day moving average at $22.77. Support is seen near the December lows at 21.69. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices have moved out of oversold territory which reflects accelerating positive momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

Fed Chair Testifies in Front of the Senate

Federal Reserve Chairman Jerome Powell testified Tuesday before the Senate Banking Committee as part of his confirmation process to head the central bank for a second term. Powell expressed concerns about inflation and said that the Fed will take the necessary steps to rain in price increases. He also said that growth is recovering strongly in the wake of the pandemic.