- Silver price extends recovery to near $31.00 as demand for safe haven assets improves.
- Russia threatens to attack Ukraine with nuclear-capable ballistic missiles.
- US Dollar Rebounds as Investors Focus on a Slew of US Economic Data
The price of Silver (XAG/USD) recovers further to around $31.00 in the North American session on Friday. The white metal rebounded on Thursday after hitting a new 11-week low near $29.60. The asset strengthens as investors fear that Russia could launch a nuclear attack on Ukraine.
Russia threatens a possible nuclear-capable ballistic missile attack on Ukraine, followed by firing a series of intermediate-range ballistic missiles (IRBMs) at 17 targets, including defense and energy facilities. The prevailing war between Russia and Ukraine keeps the demand for safe haven assets intact. This was Russia’s second largest attack on Ukraine, according to Ukraine’s energy ministry. Historically, the safe haven appeal of precious metals like Silver increases during times of global market uncertainty or elevated geopolitical risks.
In the Middle East, tensions between Israel and Iran have eased, with a ceasefire taking effect earlier this week.
Meanwhile, the US Dollar (USD) rebounds strongly as investors shift their focus to United States (US) labor market and business activity data, due to be released next week. The US Dollar Index (DXY), which tracks the value of the USD against six major currencies, recovers after recording a new two-week low near 105.60.
Silver technical analysis
Silver price rebounds strongly after sliding near the ascending trend line around $29.50, which is drawn from the February 29 low at $22.30 on a daily time frame. Still, the Silver price outlook is bearish as a bearish crossover, represented by the 20-day and 50-day EMA around $31.30, points to an escalation in the downtrend.
The white metal weakened after breaking horizontal support drawn from the May 21 high at $32.50.
The 14-day Relative Strength Index (RSI) is oscillating in the range of 40.00-60.00, suggesting a sideways trend.
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.
