Silver surged over 3% on Tuesday, breaking decisively above its 200-day Simple Moving Average at $68.59 as escalating US-Iran geopolitical tensions drove safe-haven flows into precious metals. The white metal is now forming a technical double bottom pattern, signaling potential further upside momentum for traders watching chart formations.
The rally comes amid heightened Middle East conflict concerns, with investors rotating into traditional safe-haven assets as risk sentiment deteriorates across global markets. Silver’s recapture of the key 200-day SMA represents a significant technical milestone that could attract momentum-based algorithmic buying and trigger stop-loss orders positioned below that level.
Traders are now eyeing whether silver can maintain this critical support-turned-resistance level, with sustained trading above $68.59 likely to bring additional technical buyers into the market. Options traders and physical silver dealers should expect increased volatility as geopolitical developments continue to unfold.
FXnCO Insight
Watch for confirmation above $68.59 through the week’s close—a sustained break positions silver for a technical run toward $73-75 resistance zones while geopolitical risk premiums remain elevated.
Source: FXStreet