- Silver price appears stable above $23.00 as safe haven demand remains intact.
- The market mood remains bearish as Israel plans to destroy the Hamas army in Gaza.
- The Fed’s Bostic said a slowdown is coming, but the economy will not see a recession.
The price of the Silver (XAG/USD) managed to move the auction above the crucial resistance of $23.00 late in the European session. The white metal remains firm, as the deteriorating situation in Gaza due to the escalation of conflicts between the Israeli army and the Palestinian military group has reinforced the attractiveness of safe haven assets.
Market sentiment remains bearish as tensions are expected to escalate in the Middle East after Israel’s defense chief instructed troops to enter Gaza and destroy the Hamas army. Losses in S&P 500 futures were accentuated in the London session as the third quarter earnings season began.
Demand for safe-haven assets has also improved due to Federal Reserve (Fed) Chairman Jerome Powell’s neutral guidance at the Economic Club of New York. Fed Powell’s commentary indicated that bond yields are high enough and effective enough to compress spending and investment overall.
For his part, Fed President Raphael Bostic stated in an interview with CNBC that a slowdown is coming, but that the economy will not enter a recession. Bostic remains confident that the central bank will manage to control inflation. He predicted that the Fed will cut interest rates by the end of 2024.
Silver technical analysis
The price of Silver is trading in a bullish pattern on an hourly scale in which each pullback is considered a buying opportunity by market participants. The 50-period exponential moving average (EMA) around $23.00 continues to provide support to silver price bulls. Horizontal resistance is drawn from the September 29 high at $23.56.
The Relative Strength Index (RSI) (14) moves to the 40.00-60.00 range from the bullish 60.00-80.00 range. This indicates that the bullish momentum has ended while the overall trend remains bullish.
XAG hourly chart
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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.
