- Silver price reaches a new high above $34.00 thanks to multiple tailwinds.
- The white metal gains ground due to the new escalation in the Middle East war and the uncertainty of the US presidential elections.
- The Fed is expected to moderately reduce interest rates.
The price of Silver (XAG/USD) jumps above $34.00 in the North American session on Monday for the first time in almost 12 years. The white metal is strengthening thanks to multiple tailwinds: the ongoing war between Israel and Iran, and growing uncertainty over the United States (US) presidential election.
Israel vowed to retaliate against Iran’s attack on October 1, according to leaked documents from the National Security Agency (NSA) and the Geospatial Intelligence Agency (GEOIN), which were authenticated by a US official, The New York Times reported. . The scenario of escalated geopolitical tensions improves the attractiveness of precious metals, such as Silver, as a safe haven.
Silver’s appeal as a safe haven has also been strengthened by the head-to-head competition between US Vice President Kamala Harris and former US President Donald Trump for the November 5 presidential election. .
Meanwhile, the US Dollar (USD) rebounds strongly after a slight correction on expectations that the Federal Reserve’s (Fed) policy easing cycle will be moderate for the rest of the year. The Dollar Index (DXY), which measures the value of the greenback against six major currencies, is aiming to reclaim the 11-week high around 104.00.
Looking ahead, investors will pay close attention to S&P Global’s preliminary United States (US) PMI data for October, due out on Thursday.
Silver technical analysis
Silver price strengthens after a break above the horizontal resistance drawn from the May 21 high at $32.50 on a daily time frame. The upward-sloping 20-day and 50-day EMA near $30.70 and $31.70, respectively, signal more upside ahead.
The 14-day Relative Strength Index (RSI) is trading above 60.00, pointing to active bullish momentum.
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.
