Silver (XAG/USD) surged to fresh two-week highs just below $78.00 on Tuesday, rebounding from lows around $72.60 seen on Monday. This rally was driven by renewed speculation about a potential second round of negotiations between the US and Iran, which has boosted risk appetite and weakened the US Dollar, thereby supporting precious metals prices [1]. The US military blockade of Iran’s ports had previously heightened tensions, but news reports indicate that both US and Iranian teams could return to Islamabad for peace talks this week, following the failure of last weekend’s meeting in Pakistan. US President Trump stated on Monday that Iranian authorities had reached out to “work for a deal,” and Reuters reported on Tuesday about the possibility of renewed talks [1].
The breakdown of the previous peace talks had caused precious metals to drop, as US negotiators maintained that Iran’s refusal to halt uranium enrichment remained a red line. Despite this, a two-week ceasefire is still in effect, maintaining hopes for a peace agreement [1].
From a technical perspective, XAG/USD maintains a bullish bias within an upward parallel channel. The Relative Strength Index (RSI) is around 64, indicating strong but not overbought momentum, while a positive MACD reading at 0.16 suggests renewed buying pressure. Bulls are now targeting a breach of last week's high at $77.65, with further upside potential toward the $80.00 psychological level and the April 1 peak at $81.13. On the downside, immediate support is seen at $74.75, with further support at $72.61 and the $66.70–$68.30 range, which previously held as a floor in late March and early April [1].
CONCLUSION
Silver prices have rallied sharply on optimism surrounding renewed US-Iran peace negotiations, which has boosted risk appetite and pressured the US Dollar. Technical indicators point to continued bullish momentum, with traders eyeing further gains if peace talks progress. The market remains sensitive to geopolitical developments, with support levels in place should sentiment shift.