- Silver price climbs to $23.00 as deepening Middle East tensions improve the safe-haven appeal.
- The US Dollar and long-term bond yields have recovered strongly after upbeat US Retail Sales data.
- Silver price jumps above the 50% Fibo retracement at $22.85.
Silver price (XAG/USD) prints a fresh two-week high at $23.00 as the appeal for bullion improves due to deepening Middle East tensions. Israel is ready for the ground invasion of the Gaza Strip from terror attacks from the Hamas military group.
The uncertainty over US President Joe Biden’s visit to Israel to support it in the war situation against Palestine and ensure the safety of civilians in Gaza has strengthened the demand for Gold and Silver.
Meanwhile, the US Dollar and long-term bond yields have recovered strongly after upbeat United States Retail Sales data. The US Census Bureau reported that consumer spending momentum expanded at a higher pace of 0.7% in September against estimates of 0.3%. Robust retail sales were prompted by upbeat demand for automobiles and dining out.
For fresh guidance on interest rates, investors shift focus to the speech from Federal Reserve (Fed) Chair Jerome Powell, which is scheduled for Thursday. It would be interesting to know whether Jerome Powell would join other teammates and support a steady interest rate policy due to rising Treasury yields or will consider some further policy-tightening appropriate.
Silver technical analysis
Silver price climbs above the 50% Fibonacci retracement (plotted from August 30 high at $25.00 to October low around $20.70) at $22.85. The white metal continues to find support from the 20-period Exponential Moving Average (EMA), which trades around $22.60.
The Relative Strength Index (RSI) (14) climbs into the bullish range of 60.00-80.00, which indicates that the bullish impulse has been activated.
Silver two-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD recovers toward 1.0850 amid risk reset
![EUR/USD recovers toward 1.0850 amid risk reset](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/MoneyEURUSD_2_XtraSmall.jpg)
EUR/USD is attempting a bounce toward 1.0850 in the European session on Monday, as traders ignore France's election gridlock, lifting risk sentiment. Risk reset checks the renewed US Dollar upside. EU Sentix data is next in focus.
GBP/USD steadies above 1.2800 as US Dollar struggles
![GBP/USD steadies above 1.2800 as US Dollar struggles](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-689067954_XtraSmall.jpg)
GBP/USD keeps its range above 1.2800 in European trading on Monday. The US Dollar recovery stalls and offers some comfort to the pair. Traders, however, remain wary after the UK elections and ahead of Powell's testimony and US CPI data due later this week.
Gold price edges lower as PBoC keeps Gold buying on hold
![Gold price edges lower as PBoC keeps Gold buying on hold](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacked-gold-bars-13094022_XtraSmall.jpg)
Gold price attracts some sellers below the $2,400 barrier on Monday. Yellow metal loses traction as China's Central Bank has stopped buying for the second month in June.
Bitcoin falls below $55,000 level
![Bitcoin falls below $55,000 level](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptocurrenciesusd_XtraSmall.jpg)
Bitcoin dropped below $56,552 on Sunday, disrupting market structure and signaling a bearish outlook. Ethereum and Ripple also revisited their support levels, slipping below critical thresholds.
The week ahead: Earnings season and US CPI in focus
![The week ahead: Earnings season and US CPI in focus](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Prices/CPI/consumer-price-index-gm500080630-80587217_XtraSmall.jpg)
Financial markets will be digesting political news at the start of this week. Key economic highlights this week include the US CPI for June, which is expected to decline to 3.1% on an annual basis, down from 3.3% in May.