Silver Price Analysis: XAG/USD stabilizes above $23 as Middle East conflicts strengthen safe-haven bet

Silver price (XAG/USD) shifts auction above the crucial resistance of $23.00, which has turned into support for bulls. The white metal strengthens as deepening conflicts between Israel and Palestine have strengthened the appeal for safe-haven assets.

The S&P500 opens on a bearish note amid a cautious market mood. The visit of US President Joe Biden to Israel has escalated fears of an intervention by Iran in the Israel-Palestine tensions. Joe Biden remained ‘loud and clear’ that the US stands with Israel. Also, Biden confirmed that the hospital in Gaza was bombed by Palestine, not by Israel.

Meanwhile, the US Dollar Index (DXY) seems well-supported near 106.00 as the United States economy is resilient despite headwinds of higher interest rates. The US Retail Sales rose by 0.7% in September while investors forecasted a growth by 0.3%. In August, the retail demand rose by 0.9%. US Census Bureau noticed that demand for automobiles and dining out remained upbeat.

For further guidance, investors will focus on the speech from Federal Reserve (Fed) Chair Jerome Powell, which is scheduled for Thursday. The guidance from Jerome Powell on the interest rates will be keenly watched.

Silver technical analysis

Silver trades in a Rising Channel chart pattern in which each pullback is considered as a buying opportunity by the market participants. Upward-sloping 20-period Exponential Moving Average (EMA) at around $23.00 indicates that the short-term trend is bullish. Horizontal resistance is plotted from September 22 high at $23.76.

The Relative Strength Index (RSI) (14) shifts into the bullish range of 60.00-80.00, which warrants more upside ahead.

Silver two-hour chart