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The price of silver (XAG/USD) recovered further near the $31.00 mark in the North American session on Friday. The grey metal bounced back on Thursday after posting a fresh 11-week low near the $29.60 level. The asset strengthened as investors feared that Russia could launch a nuclear attack on Ukraine.Russia threatened a possible nuclear-capable ballistic missile strike on Ukraine, followed by firing a series of Intermediate Range Ballistic Missiles (IRBM) on 17 targets, including defense and energy facilities. The prevailing war between Russia and Ukraine has kept the demand for safe-haven assets intact.This was the second-largest Russian attack on Ukraine, according to Ukraine’s energy ministry. Historically, the safe-haven appeal of precious metals such as silver increases during times of global market uncertainty or heightened geopolitical risks.In the Middle East, tensions between Israel and Iran have eased, with a ceasefire coming into effect early this week.Meanwhile, the US dollar rebounded strongly as investors shifted focus to the United States’ labor market and business activity data, which will be released next week. The US Dollar Index (DXY), which tracks the greenback’s value against six major currencies, bounced back after it posted a fresh two-week low near the 105.60 mark.
Silver Technical Analysis
The silver price rebounded strongly after sliding to near the upward-sloping trendline around $29.50, which is plotted from the Feb. 29 low of $22.30 on a daily timeframe. Still, the outlook for silver is bearish, as the 20- and 50-day Exponential Moving Average (EMA) at around the $31.30 level pointed to an escalation in the downside trend.The grey metal weakened after the breakdown of the horizontal support plotted from the May 21 high of $32.50. The 14-day Relative Strength Index (RSI) oscillated in the 40.00-60.00 range, suggesting a sideways trend.
Silver Daily Chart
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