Silver Price Rises Rapidly on USD Weakness, Safe Having Buying
Silver prices are rapidly approaching the $18.50 mark after risk-off sentiment hit the markets on Monday. Safe haven buying and a new round of USD weakness kicked in fully after Iran announced that it would no longer respect the uranium enrichment limitations that were part of the nuclear deal it had signed up to in 2016.
Furthermore, a statement by credit rating agency Moody’s has indicated that any conflict between the US and Iran that extends for a prolonged period could have serious “global repercussions” by impacting oil prices. The report also noted that the regional geopolitical risks haven been heightened by the US attacks in Iraq.
The current situation is good news for investors bullish on the safe haven assets, with silver continuing its steady climb after breaking above the upper border of the falling wedge on the daily chart.
Having broken the wedge’s upper border, the silver price target at 18.6536 is firmly within sights of the bulls. This is where price previous found highs on August 29 as well as September 23-25, 2019. Above this level, the next major resistance lies above the $19.50. Price would therefore need a breach above 18.6536 to target this area with a decisive 3% penetration close. It is also crucial to keep an eye on the oscillator, which is presently at overbought levels.
To the downside, a price retreat from profit taking targets the previous resistance-turned support at 18.1053. Below this level, 17.4875 comes into the picture.