- The price of Silver recovers slightly above $31.00 due to geopolitical tensions.
- Ukraine launched missiles supplied by the United Kingdom at Russia, resulting in a new escalation in the war.
- Investors await preliminary US S&P Global PMI for November.
The price of Silver (XAG/USD) bounces slightly above $31.00 in the North American session on Thursday after a correction near $30.80 on Wednesday. The white metal rebounds due to the new escalation in the war between Russia and Ukraine, forcing investors to take refuge in safe assets, such as Silver.
Geopolitical tensions were renewed when Ukraine launched UK-supplied missiles at Russia, a day after it fired the Army Tactical Missile System (ATACMS) provided by United States (US) President Joe Biden. which increased the risks of a third world war.
Historically, the appeal of safe-haven assets, such as Silver, improves in times of uncertainty or elevated geopolitical risks.
The silver price outlook remains uncertain as investors doubt whether the Federal Reserve (Fed) will cut interest rates again at its December meeting. The probability that the Fed will cut interest rates by 25 basis points to 4.25%-4.50% in December has dropped to 56% from 72% a week ago, according to the CME FedWatch tool.
Meanwhile, the US Dollar Index (DXY), which tracks the value of the Dollar against six major currencies, is teetering around 106.60. 10-year Treasury yields are around 4.40%.
Looking ahead, investors will focus on S&P Global’s preliminary PMI data for November, due out on Friday. Economists expect private sector activity overall to have improved.
Silver technical analysis
Silver price remains on track towards the ascending trend line around $29.00, drawn from the February low of $22.30, which also coincides with the 200-day EMA. The white metal faces selling pressure near the 20-day EMA, which is trading around $31.40.
The asset weakened after breaking horizontal support drawn from the May 21 high of $32.50.
The 14-day RSI falls near 40.00. A bearish momentum will be triggered if the RSI (14) remains below it.
Silver daily chart
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.
