- Silver is consolidating near multi-month highs not far below $25.50 as markets remain intensely focused on the Ukraine conflict.
- Technicians have noted that silver spot prices have formed an ascending triangle in recent days.
Silver prices (XAG/USD) are consolidating near multi-month highs with the $25.50/troy ounce level now acting as resistance, but continued nervousness over the ongoing conflict in Ukraine and its economic impact underpins the safe-haven metal for now. At current levels of $25.35, silver is trading largely unchanged on the day, focusing for now on talks between the Ukrainian and Russian delegations in the hope that some sort of ceasefire may be in the offing.
Given the maximalist demands that Russian President Vladimir Putin still made on Tuesday, demands that the Ukrainian government is highly unlikely to accept, hopes that a comprehensive ceasefire agreement can be reached are slim. That suggests there is no end in sight to the rally in prices for Russia’s exported commodities (oil, gas, various agricultural products and base metals), which will likely hold assets seen as offering inflation protection in the demand (such as silver).
Technicians have noted that silver spot prices have formed an ascending triangle over the past few days, a pattern that in most cases is indicative of a breakout to the upside. Technical buying on a break above $25.50 could dovetail nicely with fundamentals if the Ukraine conflict continues to escalate and Western nations are expected to continue to tighten sanctions around Russia’s neck. Silver may move aggressively and some bulls are likely to be eyeing the mid-2021 highs in the $28.00 area.
Additional technical levels
Source: Fx Street
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