Silver (XAG/USD) experienced a sharp decline, losing more than $10 in value following a risk-averse reaction to US President Trump's televised message on Wednesday [1]. The precious metal is currently testing levels below $71.00, trading at $70.80 at the time of writing, after peaking at $81.13 earlier in the day [1]. The drop was triggered by President Trump's failure to provide a specific date for the end of the Iran war, instead reiterating aggressive threats against Iran and urging allies to secure the Strait of Hormuz. Tehran responded with pledges of devastating attacks on Israel and the US, further dampening hopes for de-escalation [1].
Technical analysis indicates that silver has broken its near-term bullish trendline, with the hourly chart showing XAG/USD breaching the ascending trendline support at $71.70. The Relative Strength Index (RSI) has retreated toward the low-30s from prior readings near 60, signaling mounting downside momentum, while the Moving Average Convergence Divergence (MACD) remains below the signal line, reinforcing sustained selling pressure [1]. The intra-day low at $69.65 may provide some support, with further downside targets at the March 26 low near $66.70 and the March 23 low at $61.40 [1]. On the upside, the previous trendline support at $71.70 has now turned resistance, closing the path towards the intra-day high at $75.88 [1].
The market reaction has been notably risk-averse, with the US Dollar prevailing in the current environment and exerting downward pressure on silver prices [1]. No forward-looking statements or analyst opinions are provided in the article regarding future price movements or broader market implications [1].
CONCLUSION
Silver's price has been significantly impacted by heightened geopolitical tensions and US Dollar strength, resulting in a sharp drop below $71.00. Technical indicators suggest continued bearish momentum, with key support and resistance levels in focus. The market remains risk-averse, and further developments in US-Iran relations could continue to influence silver prices.