Silver Prices Slide on Weak Industrial Production Figures

Silver prices moved lower on Friday but finished the week in the black up 2.3%. The dollar rebounded on Friday, putting downward pressure silver prices. U.S. Treasury yields rallied despite mixed economic data. The 2-year Treasury yields hit a pre-pandemic high while the interest rate curve flattened. Retail sales were softer than expected as online spending declined. Import prices dropped while industrial production unexpectedly fell.

[fx-broker slug=fxtm]

Technical Analysis

On Friday, silver prices moved lower as the precious metals complex turned lower. Resistance is seen near the 50-day moving average at $23.19. Support is seen near the 10-day moving average at 22.76. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. 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).

Industrial Production Unexpectedly Declines

Industrial production fell 0.1% in December compared with the previous month, the Federal Reserve reported Friday. Expectations had been for factory output to grow 0.2% during the month. In November, industrial production rose by an upwardly revised 0.7%.