Prediction of Silver Price - Silver prices maintained their uptrend due to a lower currency and decreasing yields

As investors continue to harbor inflationary concerns, silver prices increased. On Tuesday, gold prices increased further as the US dollar fell to a one-month low. The dollar's decline from multi-year highs has persisted.

In the market, aggressive Fed tightening has already been priced in. Today, benchmark rates declined as the stock market sell-off from the previous week resumed. Today, the yield on ten-year bonds fell by 12 basis points and traded above a level not seen since late 2018. Oil prices increased due to fears of a supply shortage.

The European Union is negotiating a ban on oil imports from Russia. An embargo will likely mitigate the effect of the lifting of limitations in China and the increase in US oil production on the growth of demand.

The US Flash Manufacturing PMI for the month of May came in at 57.5, while the Dow Jones forecast was for 57.4. However, the US Flash Services PMI came in at 53.5, 1.5 points lower than anticipated.

These important economic indicators indicate that rising inflation has had a negative impact on supply and demand for goods and services. Fed Chair Powell is scheduled to talk today and will likely reiterate the Fed's intention to raise interest rates to rein in inflation despite the economy's obvious weakness. 

Technical Evaluation

Maintaining a positive outlook, silver prices remain high and stable at $22 per ounce. The XAG/USD pair maintains its uptrend above the 200-day moving average. A sinking dollar and poor economic data support the precious metal's bullish trend.

Near the 10-day moving average of $21.56 is viewed as support. Near the 200-day moving average of 23.58 is observed to be a region of resistance. The short-term momentum is bullish, since the fast stochastic signaled a buy crossing.

The medium-term momentum turns positive when the histogram and MACD both show positive values (moving average convergence divergence). The MACD histogram is moving in a positive direction, indicating an upward trend in price movement.