- The price of Silver rises to $23.00 as rising tensions in the Middle East improve safe haven appeal.
- The US dollar and long-term bond yields have rallied strongly following encouraging US retail sales data.
- Silver price overcomes the 50% retracement at $22.85.
The price of the Silver (XAG/USD) marks a new two-week high at $23.00 as bullion’s appeal improves due to escalating tensions in the Middle East. Israel is prepared for the ground invasion of the Gaza Strip due to the terrorist attacks of the Hamas military group.
The uncertainty regarding the visit of US President Joe Biden to Israel to support it in the war situation against Palestine and guarantee the safety of civilians in Gaza has reinforced the demand for Gold and Silver.
Meanwhile, the US dollar and long-term bond yields have rallied strongly following encouraging US retail sales data. The US Census Bureau reported that consumer spending momentum expanded at a faster pace of 0.7% in September versus estimates of 0.3%. Retail sales were boosted by demand for cars and eating out.
For fresh guidance on interest rates, investors are focusing on Federal Reserve (Fed) Chairman Jerome Powell’s speech scheduled for Thursday. It would be interesting to know if Jerome Powell will join other teammates and support a stable interest rate policy due to rising Treasury yields or if he will see further policy tightening as appropriate.
Silver technical analysis
Silver price surpasses the 50% Fibonacci retracement (traced from the August 30 high at $25.00 to the October low around $20.70) at $22.85. The white metal continues to find support at the 20-period exponential moving average (EMA), which is trading around $22.60.
The Relative Strength Index (RSI) (14) rises to the bullish range of 60.00-80.00, indicating that bullish momentum has been activated.
XAG Two Hour Chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
