Silver Price Falls Despite Global Risks, Gold Remains Bullish

Gold went through a brutal pullback, falling $354 earlier this month, but this week buyers are in total control after the bounce and fundamentals are helping them as well, with the escalation of the conflict in Ukraine, however Silver is showing weakness.

After a strong surge in recent weeks, gold prices retreated this week, closing at $2,655 on Wednesday. The pullback was fueled by profit-taking and a softening US dollar, which initially supported gold’s recovery. On Monday, gold extended its gains by nearly $25, but a doji candlestick formed on Tuesday’s daily chart signaled a bearish reversal. This pattern was confirmed by a decline in prices on Wednesday.

Gold Chart Daily – Buyers Have to Push Above the 50 SMA

The recent bullish momentum in gold has been tempered by overbought conditions in the US dollar. A weaker dollar typically benefits gold by making it more affordable for international buyers. However, hawkish remarks from Federal Reserve officials reignited dollar strength, with USD buyers returning and driving the currency one cent higher.

Geopolitical Tensions and Gold’s Resilience

Geopolitical developments provided fresh support for gold. Escalating tensions following Ukraine’s long-range missile strike on Russia intensified safe-haven demand. Reports revealed that outgoing US President Joe Biden authorized the delivery of TACMS missiles to Ukraine, which were promptly used to strike deep into Russian territory. In response, Russian President Vladimir Putin approved revisions to the country’s nuclear doctrine. These developments bolstered gold prices despite the looming technical resistance posed by the 50-day simple moving average (SMA) in yellow.

Silver Chart Daily – Prices Struggle Amid Treasury Yield Spike

While gold managed to maintain upward momentum, silver struggled to capitalize on safe-haven demand. XAG/USD reversed lower, failing to sustain its rally. The sharp rise in US Treasury yields, with the 10-year yield surging to 4.43%, exerted downward pressure on silver prices.

The silver price dropped below the $31 mark but faces technical support at the 100-day SMA (green), which could slow further declines. Despite its recent setback, the overall trajectory of silver remains sensitive to broader market trends and shifts in risk sentiment. For sellers though the $30 area is the level to watch.

Live Silver Price Chart