Silver (XAG/USD) extended its losses on Tuesday, trading at $72.24 and down 0.69%, after failing to clear the $75.00 milestone. Technical indicators signaled a bearish outlook, with the 20-day SMA crossing below the 100-day SMA and the Relative Strength Index (RSI) sitting below the 50-neutral level, both suggesting sellers are gaining traction. The price had previously fallen below the 100-day SMA on April 2, reaching $69.58 before recovering above $70.00. Key support is identified at $70.00, with further downside targets at $69.58 and $64.10 if this level is breached. Resistance is seen at $74.00, $75.11 (confluence of SMAs), and $77.98. The technical setup indicates that sellers remain in control, and a bearish continuation is possible if support levels fail [1].
In contrast, gold (XAU/USD) advanced 0.63% on Tuesday, trading at $4,678 after rebounding from daily lows of $4,607. The rise was attributed to a weaker US Dollar, with the US Dollar Index (DXY) falling 0.17% to 99.82. Geopolitical uncertainty in the Middle East, particularly around US-Iran relations and the approaching deadline set by US President Donald Trump to reopen the Hormuz Strait, has kept haven demand for gold elevated. Mixed headlines regarding US-Iran diplomacy and ongoing military tensions have contributed to market confusion but supported gold prices. Reports indicated intensified attacks by the US, Israel, and Iran ahead of the deadline, with Israeli military on standby for potential strikes [2].
On the macroeconomic front, Federal Reserve officials commented on policy independence and inflation risks. Chicago Fed President Austan Goolsbee emphasized the importance of central bank independence, while New York Fed President John Williams warned that energy shocks from the Middle East conflict could lift headline inflation to around 2.75% annually into mid-year. US data showed Durable Goods Orders contracted by 1.4% in February, marking a third consecutive decline, though core goods rose 0.8% month-over-month. The New York Fed’s consumer survey indicated rising inflation expectations, with the one-year outlook at 3.4%. Money markets are not expecting further Fed easing in 2026, projecting interest rates to remain unchanged throughout the year [2].
CONCLUSION
Silver faces continued downside pressure as technical signals favor sellers, with key support levels in focus. Meanwhile, gold benefits from safe-haven demand amid geopolitical tensions and a weaker US Dollar. Market sentiment remains cautious, with inflation and Fed policy outlooks adding to uncertainty.