XAG/USD price surges above $31 amid rising demand for safe-haven assets
Silver in a sideways trend
On Friday, November 22, silver prices broke above $31 during the morning hours, driven higher as investors reacted to escalating geopolitical tensions.
The war in Ukraine has entered a new phase of escalation. Following the Western coalition's approval of using high-precision ATACMS and Storm Shadow missiles for strikes on Russian territory, several Russian targets and stockpiles were hit. In response, Russia used an intercontinental ballistic missile (ICBM) Rubezh for the first time, deploying a prototype to strike Dnipro.
Additionally, Vladimir Putin warned the United Kingdom of possible strikes against countries supplying missile weaponry to Ukraine. British Prime Minister Keir Starmer’s spokesperson responded, stating, "This only strengthens our resolve," signaling that the UK’s policy would remain unchanged.
Silver in a sideways trend
The heightened geopolitical uncertainty is boosting demand for safe-haven assets like silver.As a result, the white metal recovered from its recent decline near $29.70 and climbed back toward the 20-day exponential moving average (EMA) at around $31.40.
XAG/USD price dynamics since the beginning of 2024. Source: TradingView.
Resistance for silver’s upward momentum is expected near the horizontal line drawn from the May 21 high at $32.50, while key support is seen along the rising trendline around $29.50, originating from the February 29 low at $22.30.
The 14-day Relative Strength Index (RSI) is currently reading below 49, indicating a sideways trend in the market.
As we wrote, silver began the week on a strong note, climbing during Asian trading hours on November 18 to the $30.70-$30.75 range. It then continued its upward movement, gaining 2% to reach $30.96 since the start of the trading day.
