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1. All three major U.S. stock indices closed lower, with the Dow Jones Industrial Average down 1.9%, the S&P 500 down 2.71%, and the Nasdaq down 3.56%. Amazon fell over 5%, and Nvidia fell nearly 5%, leading the Dow lower. The Wind US Tech 7 Index fell 3.65%, with Tesla down over 5% and Facebook down nearly 4%. Chinese concept stocks fell across the board, with Daquan New Energy down over 14% and GDS down over 13%. For the week, the Dow Jones Industrial Average fell 2.73%, the S&P 500 fell 2.43%, and the Nasdaq fell 2.53%. 2. All three major European stock indices closed lower, with the German DAX down 1.5%, the French CAC 40 down 1.53%, and the UKs FTSE 100 down 0.86%. For the week, the German DAX fell 0.56%, the French CAC 40 fell 2.02%, and the UKs FTSE 100 fell 0.67%. 3. U.S. Treasury yields fell across the board, with the 2-year Treasury yield down 1.63 basis points to 3.572%, the 3-year Treasury yield down 2.22 basis points to 3.586%, the 5-year Treasury yield down 2.25 basis points to 3.708%, the 10-year Treasury yield down 1.95 basis points to 4.117%, and the 30-year Treasury yield down 1.47 basis points to 4.707%. 4. International precious metals futures generally closed higher, with COMEX gold futures up 1.58% to $4,035.50 per ounce, a weekly gain of 3.24%. COMEX silver futures rose 0.76% to $47.52 per ounce, a weekly loss of 0.94%. Federal Reserve Chairwoman Mary Daly indicated that monetary policy remains moderately tight and further interest rate cuts are possible. U.S. economic data showed weak consumer confidence and rising debt risks, boosting demand for gold as a safe haven. 5. International oil prices closed lower across the board. The main contract of U.S. oil fell 5.32% to $58.24 per barrel, down 4.34% for the week; the main contract of Brent crude fell 4.8% to $62.09 per barrel, down 3.78% for the week. 6. London base metals fell across the board, with LME tin futures down 4.61% to $35,350.00/ton, down 5.62% for the week; LME copper futures fell 4.54% to $10,374.00/ton, down 3.19% for the week; LME aluminum futures fell 1.88% to $2,746.00/ton, up 1.35% for the week; LME nickel futures fell 1.79% to $15,215.00/ton, down 1.41% for the week; LME zinc futures fell 0.86% to $2,984.50/ton, down 1.65% for the week; and LME lead futures fell 0.76% to $2,014.50/ton, down 0.27% for the week.Frances new Prime Minister Le Cornu: Improving Frances public finances remains a top priority.Frances new Prime Minister Le Cornu: No one can avoid the need to restore Frances public finances.The S&P 500 posted its biggest weekly drop since May, while the Nasdaq had its biggest weekly drop since April.The Dow Jones Industrial Average closed down 878.82 points, or 1.90%, to 45,479.60 on Friday, October 10; the S&P 500 closed down 182.61 points, or 2.71%, to 6,552.50 on Friday, October 10; and the Nasdaq Composite closed down 820.20 points, or 3.56%, to 22,204.43 on Friday, October 10.

Silver Prices Face Downward Pressure Due to Growing Concerns About Inflation and a New Sanction on Russia

Drake Hampton

Apr 07, 2022 10:30

Tips

  • Silver prices remained stable due to fears about rising inflation.

  • The dollar strengthens upon the publication of the Federal Reserve's minutes.

  • Benchmark rates have continued to rise at a faster rate than the rate of tightening.

  • Oil prices are falling as the US and EIA pledge to release critical stockpiles.

 

Silver prices fell marginally as concerns about inflation increased as a result of the Ukraine crisis. Benchmark yields increased in response to the Fed's hawkish tone and more active policy. The ten-year Treasury yield increased to 2.61 percent, approaching March 2019 highs. Due to growing risk-averse sentiment, new sanctions on Russia resulted in a surge in gold and silver prices. Oil prices declined 2.2% to $99.73 per barrel as the US committed to deploying 60 million barrels from strategic reserves while EIA members committed to release 120 million barrels. 180 million barrels in total would be released.

 

The March FOMC meeting minutes, released on Wednesday, showed that the Fed intends to begin shrinking the balance sheet by $95 billion per month in May. Treasury securities would be limited to a maximum of $60 billion and mortgage-backed securities to a maximum of $35 billion, which would be phased in over three months. Additionally, the discussion indicated that future meetings would likely include a 50-basis-point hike. Members favored more aggressive maneuvers. Additionally, the Fed raised its inflation forecast and decreased its economic growth forecast.

Technical Evaluation

Silver prices fell to $24.4 per ounce today as increasing inflation offsets negative pressure from aggressive rate hikes and a strengthening dollar. New sanctions against Russia may act as a tailwind due to silver's safe-haven characteristics. Silver is under pressure to fall to the $24.00 level as yields rise and the dollar strengthens. This circumstance may result in a breach below support for XAG/USD. Near the horizontal trendline near 23.6, there is support. Resistance is located near the 50-day moving average, which is located near 24.5. Short-term momentum shifted negative as the fast stochastic crossed below the zero line, signaling a sell signal.

 

The medium-term momentum is negative, as indicated by the histogram's negative correlation with the MACD (moving average convergence divergence). The MACD histogram's trajectory is negative but decelerating, indicating an upward trend in price movement.

 

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