Silver Price Extends Gains to $85 as Middle East War Escalates

Silver price recovers by 3.4% or 2.85 points during the Asian trading session after tumbling more than 12% during the two previous sessions. Geopolitical conflicts in the Middle East increased demand for precious metals as safe-haven assets.

Israeli forces intensified their military operation by launching new ground operations in southern Lebanon targeting Hezbollah, while also stepping up airstrikes in the area. At the same time, the United States temporarily closed its embassies in Saudi Arabia, Juwait and Lebanon, urging American citizens to leave certain countries in the region as a precaution. According to CNN, U.S. Secretary of State Marco Rubio later confirmed that all personnel were safe after a drone struck the grounds of the U.S. consulate in Dubai.

Before delving further into the key updates on the US-Iran war and Middle East tensions, let’s take a technical look at the silver trading chart, which has been influenced by these intensified tensions.

Silver Price Technical Outlook:

Silver previously broke above the rectangle consolidation zone and moved beyond the $85 level. The rally extended toward the $96 high. This move was supported by a bullish structure in the 200-day simple Moving Average (SMA-200). The breakout confirmed a strong upside momentum at that time.

After reaching $96, silver entered a corrective phase. The price pulled back and moved back inside the rectangle pattern. It is now trading just below the upper boundary of that range. However, it remains very close to this resistance level of $85.03.

A decisive break above the upper boundary of $85.03 could strengthen the recovery. It may allow silver to retest the $86 level. A strong and sustained hold above $86 would be technically important. It could shift the SMA-200 structure from bearish to bullish. This would increase the chances of a renewed move toward the $96 high.

On the downside, failure to break above the resistance may keep the price trapped inside the range. Continued weakness could expose lower support levels.

The RSI is currently near the mid-level, around 45-47. This suggests neutral momentum. The market is not overbought or oversold. Overall, silver is trading at a sensitive technical zone, and the next breakout will likely determine the medium-term direction.

Key Updates: Escalation in the US-Iran War and Regional Tensions Across the Middle East:

• The United States and Irael have expanded their military operations against Iran, striking thousands of Iranian targets and degrading military infrastructure. This campaign has triggered widespread Iranian missile and drone retailiation across the region.
• Iran has launched numerous missile and drone attacks on U.S. military bases and allied facilities in Gulf states, including Bahrain and Kuwait, as well as near the U.S. consulate in Dubai.
• U.S. diplomatic missions across the Middle East, including in Saudi Arabia, Kuwait, Bahrain, and Lebanon, have suspended services or been closed due to heightened threats. American citizens are being urged to shelter in place or depart where possible.
• A multi-drone strike targeting the U.S. Embassy in Riyadh caused structural damage and smoke within the compound. Saudi authorities confirmed limited damage, and personnel safety remain effect.
• Lebanese Hezbollah has launched missiles into northern Israel in response to the wider conflict.
• The conflict has disrupted air travel across Gulf airspace, raised global oil prices due to shipping risks around the Strait of Hormuz, and caused widespread uncertainty in financial markets.