Despite a decline in the value of gold, silver prices are predicted to increase

Along with the majority of the precious metals complex, silver prices moved in a sideways direction. Following weaker-than-expected existing home sales, U.S. Treasury rates were restricted. Gold prices decreased, putting a ceiling on the precious metals complex.

According to the National Association of Realtors, existing home sales decreased by 3.4% in May to 5.41 million units at an annualized pace. Sales decreased by 8.6% compared to May 2021. This value is the lowest since June 2020. The decline in demand was likely due to the increase in mortgage rates. During the month of May, the average rate on a 30-year fixed mortgage increased from around 4 percent to 5.5%.

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Technical Evaluation

The price of silver inched up but remained above the 10-day moving average of 21.64. At the 50-day moving average of 22.52, there is observed resistance.

The recent crossing of the 50-day moving average below the 200-day moving average is negative for XAG/USD and indicative of bearish momentum.

As the fast stochastic created a crossing sell signal, short-term momentum has gone negative.

The medium-term momentum turns positive when the histogram and MACD both show positive values (moving average convergence divergence). The trajectory of the MACD histogram is positive with an upward sloping trajectory, indicating that prices will increase.