Silver Prices Surge Amid Middle East Tensions

Spot silver prices surged nearly 2% on Tuesday, July 30, amid escalating geopolitical tensions in the Middle East. FXStreet analyst Christian Borjon Valencia analyzed the technical trends of silver prices, noting the impact of recent events on the market.

Spot silver closed the session 1.9% higher at $28.37 per ounce. Valencia pointed out that silver prices increased by more than 1.80% on Tuesday following Israel's retaliation to Hezbollah's weekend attacks. On the evening of July 30, an Israeli drone struck a Hezbollah target in the southern suburbs of Beirut, Lebanon, firing three missiles and causing the collapse of a building. The attack resulted in three deaths and 74 injuries.

The Israeli Defense Forces stated that the strike aimed to eliminate a Hezbollah commander responsible for an earlier attack on the town of Majdal Shams in the Israeli-occupied Golan Heights. According to Reuters, the Israeli military claimed to have killed Hezbollah's top commander Fuad Shukr in an airstrike on Beirut in retaliation for a cross-border rocket attack three days prior.

Looking ahead, Valencia suggests that if silver continues its upward trend and surpasses its 100-day moving average of $28.54 per ounce, it could aim for $29.00 per ounce. Further strength could see silver reaching the 50-day moving average of $29.93 per ounce and testing the $30.00 per ounce mark.

Conversely, if silver falls below $28.00 per ounce, it could exacerbate the downtrend, pushing prices down to the July 29 low of $27.31 per ounce. A drop below this level could see silver heading towards $27.00 per ounce, followed by the 200-day moving average of $25.92 per ounce.

At 08:23 GMT, spot silver was trading at $28.35 per ounce.