Spot Silver Prices Surge to 12-Year High Amid Risk Aversion
On Tuesday, October 22, spot silver prices surged by over 3%, reaching a new 12-year high. Silver hit $34.86 per ounce during the session, closing at $34.847 per ounce, the highest price recorded since late 2012. This price increase comes amid broader risk aversion in global markets, even as US Treasury yields continue to rise.
FXStreet analyst Christian Borjon Valencia reported on the technical trends driving silver's latest rally. According to Valencia, the metal has successfully broken through key psychological levels over the past few days, suggesting that buyer momentum remains strong. He noted that silver prices have advanced through the $31.00 to $34.00 per ounce range, with technical indicators signaling the potential for further gains. Momentum remains on the side of silver buyers, despite an overbought Relative Strength Index (RSI) reading, which currently has room to advance up to an RSI level of 80.
Han Tan, chief market analyst at Exinity Group, commented that if silver's current uptrend continues, it could break above the $35.00 mark before the U.S. voting day on November 5. Valencia indicated that the next resistance levels after $35.00 are the October 2012 high of $35.40 per ounce, followed by $44.22 per ounce (the August 2011 high) and ultimately the all-time high of $49.83 per ounce.
However, if silver prices were to fall back below $34.00 per ounce, Valencia identified the first support level at this week's low of $33.46 per ounce. A further decline could see silver testing support at the October 17 low of $31.32 per ounce.
The rise in silver prices is notable in light of increased risk aversion across financial markets, as investors seek safe-haven assets despite upward pressure on yields. Silver’s surge demonstrates renewed investor interest, driven by technical momentum and ongoing economic uncertainties.
