Silver Price Pause for A Breath Amid Iran-USA Tensions
XAGUSD: Silver Prices price retreat today from three-month highs, giving up 0.06% at $18.11 as traders digest the latest developments in Iran-USA tensions. Safe-haven assets pulled back in late U.S. trading session as stock indices rebounded and some improved in sentiment amid the upcoming signing ceremony of the Phase One trade deal in Washington between China and USA.
Positive fundamental data from the United States also helped risky assets. The U.S. Services PMI came in at 52.8 topping forecasts of 52.2 in December, the PMI Composite came in at 52.7 above the expectations of 52.2.
Silver price rebound from six-month lows at 16.51 continues as the precious metal getting a hand from the recent geopolitical tensions in the Middle East. The technical outlook is bullish for silver prices as the metal trades above all significant daily moving averages.
As the risk appetite returns to markets initial support for silver will be met at 17.92 the daily low. More bids might emerge at the January 2nd low at 17.80. Bears in order to take control and cancel the bullish momentum need a break below the 100-day moving average at 17.53.
Despite the correction today silver keeps the positive momentum which started on December 9th from the $16.50. Immediate resistance for silver will be met at 18.21 the daily top. A break above might challenge the high from yesterdays volatile session at 18.48. Bulls need to be cautious at the current level as the RSI 14 has reached an overbought level that might trigger a sharp correction.