Silver prices traded in a tight range.
Gold prices also consolidated, capping the precious metals complex.
Treasury yields were nearly unchanged.
Silver prices traded sideways along with most of the precious metals complex. U.S. Treasury yields were capped following lower-than-expected existing home sales. Gold prices edged lower, capping the precious metals complex.
According to the National Association of Realtors, existing Home Sales declined in May, falling by 3.4% to an annualized rate of 5.41 million units. Sales were 8.6% lower than in May 2021. This is the weakest reading since June 2020. The drop in demand was likely a function of higher mortgage rates. During May, the average rate on the 30-year fixed mortgage rose from around 4% to 5.5%.
Silver prices edged higher but remained above support near the 10-day moving average of 21.64. Resistance is seen near the 50-day moving average at 22.52.
The 50-day recent crossed below the 200-day moving average, which is a headwind for XAG/USD and indicates downward momentum.
Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.
The medium-term momentum turns positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is the positive territory with an upward sloping trajectory that points to higher prices.
This article was originally posted on FX Empire