Silver price falls towards the $30 mark – geopolitical risks in view

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Silver price falls towards the $30 mark – geopolitical risks in focus

The price of silver is on its way to the psychological $30 mark in the middle of the week. Around two weeks after the US election, there is little evidence of the recent upward momentum. Since the uncertainty about the future formation of a government has disappeared due to a quick election result, investors have recently turned their backs on the precious metal. Meanwhile, geopolitical risks could increase the attractiveness of silver again.

Russian President Vladimir Putin signed an updated nuclear doctrine at the beginning of the week, which increased the geopolitical risks again. Investors may have viewed the latest developments as a lowering of the threshold for a nuclear strike. According to Russian information, Ukraine was attacked by long-range US missiles for the first time as a Russian territory.

Important US data in view on Thursday

On Thursday we will look at important US data such as the weekly initial claims for US unemployment benefits (2:30 p.m.). The Philly Fed Manufacturing Index will also be released at the same time.
Consumer confidence from Michigan/Reuters rounds off the trading week on Friday (4:00 p.m.).
At the same time, investors should also keep an eye on monetary policy developments. For the last Fed meeting of the year on December 18th. The CME Group’s “Fed Watch Tool” currently expects a 55.5 percent chance of an interest rate cut of 25 basis points.

Chart technology in focus: Hurdle of $30 as a key psychological mark

The overall upward trend could tend to continue. If, from a technical chart perspective, successful support is achieved at $30, investors could return to the high of October 22nd at around $35. On the contrary, falling below the psychological $30 mark is likely to further increase the pressure to sell.