XAG/USD Bounces Back Strongly on Fresh Escalation in Russia-Ukraine War
Silver price (XAG/USD) recovers its intraday losses and ticks up to nearly $30.15 in the North American session on Thursday after posting a fresh 11-week low around $29.65. The white metal bounces back as a fresh escalation in the war between Russia and Ukraine has improved its safe-haven demand.
Tensions between Ukraine and Russia intensified after Russia launched its Intermediate-range Ballistic Missiles (IRBM) to hit 17 targets in Ukraine including, military facilities, defense industry facilities and their support systems in response to their attack deep inside Russia through the United States (US) ATACMS missiles last week, Russian President Vladimir Putin said at a security summit in Kazakhstan on Thursday.
According to the energy ministry in Kyiv, this is the 11th large-scale assault by Russia on Ukraine’s energy supplies this year, which caused the nationwide blackout, CNN reported.
Historically, the safe-haven appeal of precious metals such as Silver increases at times of global market uncertainty or heightened geopolitical risks.
Meanwhile, the US Dollar (USD) bounces back in a thin trading volume trading day as United States (US) markets are closed on account of Thanksgiving Day. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rebounds to near 106.30 after a sharp correction in the last three days. The USD Index rebounds on expectations that projected growth in the Personal Consumption Expenditure (PCE) inflation data for November would force Federal Reserve (Fed) officials to act cautiously on interest rate cuts.
Source : Fxstreet
