Silver Prices Remain Steady Following Plans for Biden-Putin Meeting

Silver prices edged higher on Monday ahead of plans for a possible Biden-Putin meeting over the Ukraine crisis. The US stock and bond markets are closed today. Gold prices softened near $1890, retreating from $1908, its highest since June highs. The US dollar is offered against most currencies today, while the Yen is the biggest laggard, as Russia-Ukraine tension dominates risk sentiment and price action. The market has lessened the Fed’s chance of a 50bp hike in March from 65% last week to less than 25%. Last week, the market priced 50% of a 175-basis point instead of a 150-basis point hike; however, now the market is below 150 basis points.

Technical Analysis

On Monday, silver prices rose a possible Biden-Putin meeting comes into focus. Support is seen near the 10-day moving average at 23.57. Resistance is seen near the 200-day moving average at 24.28. Short-term momentum turns negative as the fast stochastic generates a crossover sell signal. The fast stochastic is printing a reading of 90.99, exceeding the overbought trigger level of 80. Medium-term momentum is positive as MACD (moving average convergence divergence) index had a crossover buy signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses over the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in positive territory with a downward sloping trajectory, pointing toward lower prices.

Plans for Biden-Putin Talk Create Risk Appetites

US President Joe Biden and Russian President Vladimir Putin agreed to hold a summit on the Ukraine crisis. However, the meeting would be impossible if Russia invaded Ukraine. Tensions have been mounting as satellite images revealed deployments of Russian armor close to Ukraine. Several markets would take the heat of an invasion, from wheat and energy prices, the region’s sovereign dollar bonds, gold and other safe-haven assets, and stock markets.