Silver prices advanced nearly three week high in latest silver trading rounds. The white metals sparked over five percent since hitting a seven-month low at the start of the month. A risk of escalation in the Middle East military conflict drove investors toward safe assets.
The recent surge in silver prices was due to the intensifying conflict between Israel and Hamas, which bolstered bullions attractiveness as a safe haven asset. However, the rise was tempered by soaring U.S Treasury yields and the dollar’s recovery, both driven by expectations of higher interest rates.
A blast at a Gaza hospital, which reportedly killed hundreds of Palestinians, marked a potential escalation in the conflict, especially as Egyptian and Palestinian leaders called off a summit with U.S. President Joe Biden following the attack.
The move pushed up concerns that the Israel-Hamas conflict could draw in other Arab countries, causing the war to spill over into the broader Middle East region.
Later today, Federal Reserve Chair Powell’s speech is due with an anticipation that the U.S. central bank will keep rates higher for longer. This sentiment might hold bullish trend in dollar against the major counterparts, which may restrict metals prices gains or a vice versa as per the latest report coming from silver trading.
Silver Trading | Technical Outlook
Silver prices have been in a bullish trend since the start of the month. Prices witnessed a smart recovery from 3 Oct 2023 low 65666 and yesterday touched a high 72745.00. Today, it traded at 72080, up 0.77%.
On the above chart, prices are still trading above massive resistance 71350, coinciding with 50% Fibonacci Retracement in the latest silver trading session. Now prices continue consolidating above it and forming a higher high formation which is indicating a bullish momentum in near future.
And prices are expected to retest the previous high 72745 then 73500 very soon. Traders may go long on every dip towards 71800-71850 with stop loss below 71250.00.
On the downside, crucial support is seen at 71050 and below it prices may retreat towards 70400-69800.
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