Silver (XAG/USD) traded flat on Friday, with prices hovering around $75.52 after reaching an intraday low of $73.95. The metal has declined over 5% so far this week, weighed down by a stronger US Dollar and firm Treasury yields. The ongoing US-Iran tensions, particularly in the Strait of Hormuz, have driven oil prices higher and fueled expectations of a prolonged higher interest rate environment, further capping silver's upside potential [1].
Technical analysis indicates that silver remains in a bearish near-term stance, trading below the 50-day simple moving average (SMA) at $78 and the 100-day SMA at $79. These levels act as resistance, with a daily close above them needed to ease the current downside bias and potentially trigger a recovery. The 200-day SMA at $62 serves as a broader support level, while the Relative Strength Index (RSI) at 47 suggests growing downside pressure. The Moving Average Convergence Divergence (MACD) shows a marginally positive histogram, indicating vulnerable upside momentum as long as prices remain below the clustered short- and medium-term averages [1].
Market participants are closely watching the $75-$74 area as a short-term pivot. A sustained break below this zone could expose silver to further declines toward the 200-day SMA at $62. The current price action is largely driven by geopolitical headlines and interest rate expectations, with the technical outlook reinforcing a bearish tone in the near term [1].
CONCLUSION
Silver remains under pressure due to a stronger US Dollar, elevated Treasury yields, and geopolitical tensions, with technical indicators pointing to further downside risk. Unless silver can reclaim key resistance levels at the 50- and 100-day SMAs, the bearish bias is likely to persist in the near term.