By NewsBlogger The gold market surged due to safe-haven demand amid escalating tensions in the Middle East, while silver prices remained firm amidst geopolitical uncertainties and central bank policies.
At a glance
- Gold price surged to nearly $2,410 per troy ounce due to safe-haven demand
- Israeli missiles struck a site in Iran, escalating tensions in the Middle East
- US Treasury yields and a stronger US Dollar hindered gold’s upward momentum
- Silver prices rose by 0.29% and traded above $28.00 for the sixth consecutive day
- The near-term outlook for silver remains firm amidst geopolitical tensions.
The details
The gold market saw a significant price surge, reaching nearly $2,410 per troy ounce during the Asian session on Friday.
This increase was driven by a rise in safe-haven demand as risk aversion spread across financial markets.
ABC News reported that Israeli missiles struck a site in Iran, further escalating tensions in the Middle East.
Locals heard explosions at the central Isfahan airport, and investigations are ongoing to determine the full details of the incident.
However, gold’s upward momentum was hindered by a surge in US Treasury yields and a stronger US Dollar.
This made bullion more expensive for holders of other currencies.
Atlanta Fed President Raphael Bostic emphasized that US inflation is currently high, underscoring the need for the Fed to address inflation.
New York Fed President John Williams reiterated the Fed’s commitment to being data-dependent and stated that there is no immediate need to lower interest rates.
Prices rose by 0.29% in the silver market, and the trade rose above $28.00 on the sixth consecutive day.
The Relative Strength Index (RSI) remained above 54.00, indicating an upward bias in momentum favoring buyers.
Despite attempting to recapture resistance at $29.00, the price of silver fell back due to reports of Iran’s air defense destroying drones by the Israeli army.
The near-term outlook for silver remains firm amidst geopolitical tensions.
Global markets witnessed asset-specific actions, with risk-perceived currencies recovering losses.
S&P 500 futures posted significant losses in the European session, while 10-year US Treasury yields fell to 4.59%. Declining bond yields reduced the opportunity cost of investing in bullion.
New York Fed President John Williams stated that there is no urgency for rate cuts, and the central bank is prepared to hike rates again if data indicates persistent price pressures.
The US Dollar Index held steady at 106.00 as Fed policymakers supported higher interest rates.
The price of silver remained in a tight range between $28 and $29 for the last four trading sessions, with the potential for sharp volatility contraction leading to an explosion in either direction.
Overall, the gold and silver markets are influenced by a combination of geopolitical tensions, economic indicators, and central bank policies, shaping the near-term outlook for these precious metals.
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| fxstreet.com |
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| – Gold price surged to nearly $2,410 per troy ounce during the Asian session on Friday – Safe-haven yellow metal gained ground as risk aversion swept across financial markets – ABC News confirmed Israeli missiles struck a site in Iran, exacerbating tensions in the Middle East – Locals reported hearing explosions at the central Isfahan airport, cause remains unknown – Investigations are ongoing to determine exact details of the incident – Federal Reserve officials conveyed hawkish messages on Thursday – Surge in US Treasury yields and the Greenback curtailed upward momentum of non-yielding assets like Gold – Stronger USD rendered bullion more expensive for holders of other currencies – Atlanta Fed President Raphael Bostic highlighted US inflation is excessively high – Bostic emphasized Fed still needs to make progress on addressing inflation – New York Fed President John Williams stressed Fed’s commitment to being data-dependent – Williams expressed he does not currently perceive an immediate need to lower interest rates |
| fxstreet.com |
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| – Silver has gained 0.29% and is trading above $28.00 for the sixth consecutive day – XAG/USD is currently trading at $28.30 after hitting a daily low of $28.14 – The Relative Strength Index (RSI) is edging lower, but remains above 54.00 – Silver is showing an upward bias as momentum favors buyers – If buyers reclaim the daily high of $28.75, they could challenge $29.00 – A breach of $29.00 could expose the year-to-date high of $29.79 and $30.00 – A drop below $28.00 would give sellers the upper hand and expose support levels – Key support levels include the daily low of $27.59 and the 50% Fibo retracement at $27.00 |
| fxstreet.com |
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| – Silver price falls back while attempting to recapture resistance of $29.00 – White metal surrenders early gains due to reports of Iran’s air defense destroying drones by Israeli army – Israel has not confirmed attacks in retaliation to Iran’s airstrike – Near-term outlook for Silver remains firm due to geopolitical tensions – Global markets show asset-specific action with risk-perceived currencies recovering losses – S&P 500 futures post significant losses in European session – Yields on US interest-bearing assets have plummeted despite Fed leaning towards higher rates – 10-year US Treasury yields fall to 4.59% – Decline in bond yields diminishes opportunity cost of investment in bullions – New York Fed President John Williams sees no urgency for rate cuts – Central bank ready to hike rates again if data suggests persistent price pressures – US Dollar Index holds ground at 106.00 as Fed policymakers support higher interest rates – Silver price remains in tight range between $28 and $29 for last four trading sessions – Sharp volatility contraction could lead to explosion in either direction – 14-period Relative Strength Index oscillates inside 40.00-60.00 range, indicating market indecisiveness |
