- Silver price trades sideways below $22.00 as Middle East tensions improve appeal for safe-haven assets.
- The US Dollar remains under pressure as Fed policymakers support keeping interest rates steady.
- Silver price turns sideways in a range of $21.40-22.00 after an upside move.
Silver price (XAG/USD) trades sideways below $22.00 and seems gathering strength for a fresh upside as Middle East tensions have improved appeal for the safe-haven assets. The white metal is well expected to move higher as the US Dollar Index (DXY) is struggling for a firm footing after neutral interest rate guidance from Federal Reserve (Fed) policymakers.
S&P500 futures added some gains in the European session, portraying an improvement in the risk appetite of the market participants. The USD Index faces pressure due to improved market mood. The broader risk theme is still downbeat due to fears of stretch in the Israel-Hamas conflict beyond Gaza.
The US Dollar remains under pressure as Dallas Fed Bank President Lorie Logan and Vice Chair Philip Jefferson supported keeping interest rates steady due to rising Treasury yields, which have already ramped up borrowing rates.
Meanwhile, investors turned worried about the global economic outlook as higher oil prices could add to inflationary pressures ahead. IMF chief economist Pierre Gourinchas said on Tuesday, that the “IMF research indicates a 10% increase in Oil prices would weigh down on global output by about 0.2% in the following year, boost global inflation by about 0.4%.”
Silver technical analysis
Silver price turns sideways in a range of $21.40-22.00 after an upside move. The precious metal got strengthened after a breakout of the consolidation formed in a range of $20.70-21.40. The 50-period Exponential Moving Average (EMA) at $21.66 is acting as a support for the Silver price bulls.
The Relative Strength Index (RSI) (14) shifts into the 40.00-60.00 range, which signifies a rangebound performance ahead.
Silver hourly chart
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