Silver (XAG/USD) Rallies to $28.60 on Heightened Middle East Tensions

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Silver (XAG/USD) surged to $28.60 early Wednesday, propelled by escalating Middle East tensions fueling safe-haven demand. Growing fears of a wider regional conflict following Iran’s retaliatory attack on Israel have bolstered the white metal.

Market Drivers

  • Geopolitical Risks: Investors are increasingly concerned about regional instability and a potential Israeli counterattack.
  • US Treasury Yields: Declining 10-year US Treasury yields (currently at 4.63%) reduce the opportunity cost of holding non-yielding assets like Silver, despite hawkish Fed commentary.
  • US Economic Data: Robust March US Retail Sales data strengthened the overall US economic outlook, buoying the US Dollar Index (DXY) near 106.20. Strong consumer spending often reflects a healthy labor market.

Technical Analysis: Silver Eyes Breakout, RSI Signals Strength

Silver is attempting to decisively break above a key resistance level established by the August 3rd, 2020 high of $29.86. The long-term outlook remains bullish, with the upward-sloping 20-week Exponential Moving Average (EMA) at $24.85 providing support. A Relative Strength Index (RSI) in the bullish zone above 60.00 reinforces the positive momentum.


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