silver prices have surged to approximately $29.80 during the European trading session, driven by a growing interest in safe-haven assets amid escalating geopolitical tensions. Recent discussions among U.S. officials regarding potential military actions against Iran’s nuclear facilities have heightened market volatility. As uncertainties loom about foreign policy, investors are increasingly turning to safe-haven assets like silver .
Reports indicate that the U.S. administration is weighing various options for potential action against Iran, leading to a rise in safe-haven demand. Investors often flock to silver when geopolitical uncertainties arise, seeking refuge from market instability. Furthermore, concerns regarding future inflation may also bolster silver ’s appeal, particularly as changes in policy under the incoming administration could exacerbate economic challenges.
On a separate note, the U.S. dollar has experienced a slight pullback after a strong rally earlier in the week. Market participants are now looking ahead to the ISM Manufacturing PMI data set to be released soon. Expectations suggest that manufacturing activity may remain stagnant, reflecting ongoing economic struggles.
In the bond market, 10-year U.S. Treasury yields have dropped to around 4.55%, with analysts anticipating that the Federal Reserve will maintain its current stance on interest rates during its upcoming policy announcement. This anticipated pause in interest rate adjustments may further influence the attractiveness of precious metals as an investment.
From a technical standpoint, silver ’s price is testing the 20-day Exponential Moving Average (EMA) near $29.85. Current trends indicate bearish momentum unless the price can consistently hold above certain resistance levels. Key support levels are identified at the September low of $27.75, while the 50-day EMA near $30.90 represents significant resistance that may hinder any bullish momentum.
