Silver (XAG/USD) experienced a partial recovery on Monday but is set to close the day with a loss of 0.33%, following a weekend gap down attributed to negative news regarding the US-Iran conflict [1]. At the time of reporting, XAG/USD was trading at $75.58, having rebounded from a daily low of $72.61 [1]. The technical analysis indicates that silver's upside is capped by the 100-day Simple Moving Average (SMA) at $76.09, while the downside is supported by the 20-day SMA at $73.28 [1]. The price action has been mixed, with a four-day low at $72.61 suggesting the possibility of further declines, although the metal ended the day above $75.50 [1].
The Relative Strength Index (RSI) shows silver moving sideways around the neutral level, signaling a wait for a new catalyst, which could be the upcoming release of the US Producer Price Index (PPI) figures on Tuesday [1]. If XAG/USD breaks above the 100-day SMA, the next resistance is at the March 3 low of $77.98, followed by the 50-day SMA at $79.21 [1]. On the downside, a drop below the 20-day SMA at $73.28 could lead to further declines toward the April 2 daily low of $69.58 and potentially the March 23 cycle low at $60.95 [1].
Market sentiment appears cautious, with silver's sideways movement and technical barriers indicating uncertainty. The gloomy outlook surrounding the US-Iran conflict has contributed to the recent price weakness, and traders are awaiting the US PPI data for further direction [1].
CONCLUSION
Silver prices are currently constrained by technical resistance and geopolitical concerns, closing the day with modest losses. Market participants are closely watching upcoming US economic data for potential catalysts, while the technical outlook suggests both upside and downside risks depending on price movements relative to key SMAs.