Silver (XAG/USD) traded calmly near $78.70 during the European session on Friday, with the price remaining broadly sideways as investors awaited the announcement of a timeline for a second round of talks between the United States and Iran. Washington has confirmed that both countries will resume negotiations soon, following a previous round that ended without a breakthrough, and ahead of the expiration of a two-week ceasefire on April 21 [1].
US President Donald Trump expressed optimism regarding the negotiations, stating that a deal with Iran is 'very close' and that Iran has 'agreed to almost everything.' Trump further clarified that Iran appears more willing to make concessions, including giving up nuclear ambitions and handing over enriched uranium [1].
Market sentiment around the talks has kept the US Dollar Index (DXY) under pressure, with the index set for a negative close for the second consecutive week. Optimism over a potential US-Iran truce has also capped oil prices, anchoring inflation expectations and prompting traders to reduce dovish Federal Reserve bets. This environment is theoretically favorable for non-yielding assets like silver [1].
From a technical perspective, XAG/USD remains flat around $78.68, with a neutral near-term bias as it hovers near the flattening 20-period Exponential Moving Average (EMA) at $76.35. The Relative Strength Index (RSI) is in the 40.00-60.00 zone, reflecting market indecisiveness. Key resistance is seen at $80.76, with a daily close above this level potentially opening the way for a move toward the March 13 high of $85.46. Immediate support lies at the 20-period EMA ($76.35) and the rising trend-line region around $75.97 [1].
CONCLUSION
Silver prices are consolidating near $79 as investors await further developments in US-Iran negotiations. Market sentiment remains cautious, with technical indicators reflecting indecision and the US Dollar under pressure. A breakthrough in talks or a significant technical move could set the next direction for silver.