- Silver price retreats from its daily high, with no signs of retaliation from Iran following Israel's limited airstrike.
- The Fed's hawkish stance fails to boost US bond yields.
- The Fed's John Williams is comfortable with further interest rate hikes if inflation remains persistent.
The price of the Silver (XAG/USD) pulls back as it tries to regain the crucial resistance of $29.00 in the European session on Friday. The white metal gives up early gains, boosted by reports from the Middle East that Iran's air defense destroyed three Israeli army drones. Israel has not yet confirmed that it carried out these attacks in retaliation for an Iranian airstrike against its state.
The near-term outlook for Silver remains firm as worsening geopolitical tensions will keep demand for safe-haven assets intact. Meanwhile, global markets are showing asset-specific action as risk currencies have recovered losses recorded in early Asia, while global equities remain under pressure. S&P 500 futures have posted significant losses in the European session.
Yields on the interest-bearing assets of the US economy have plummeted despite the Federal Reserve's (Fed) inclination to keep interest rates higher for longer. The 10-year US Treasury yield falls to 4.59%. Declining bond yields lower the opportunity cost of investing in bullion.
On Thursday, New York Fed President John Williams said he sees no urgency in lowering rates and warned that the central bank is willing to raise them again if data suggests persistent price pressures.
The US Dollar Index (DXY) remains at 106.00 as Fed officials support keeping interest rates higher due to stubbornly high inflation, which has been fueled by tense labor market conditions.
Silver technical analysis
The price of Silver remains in a tight range between $28 and $29 since the last four trading sessions on an hourly time frame. This demonstrates a sharp contraction in volatility, which could explode in either direction. The 14-period Relative Strength Index (RSI) is oscillating within the range of 40.00-60.00, indicating indecision among market participants.
La Plata hourly 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.
