Silver (XAG/USD) traded higher on Wednesday but remained within the lower range of Tuesday’s session, consolidating below $78.00. The previous support area at $78.50 is now acting as resistance, capping upside attempts for the time being [1]. Precious metals, including silver, are hovering near recent lows as investors adopt a 'wait-and-see' approach due to escalating tensions in the Middle East, despite a ceasefire extension announced by US President Donald Trump on Tuesday. The US continues to blockade Iranian ports, which Iranian authorities view as a violation of the ceasefire, and reports of attacks by Iranian forces on ships have further strained the peace process [1].
In the United States, robust Retail Sales data released on Tuesday and the testimony of Fed Chair Nominee Kevin Warsh have strengthened the US Dollar. Warsh emphasized the importance of the Federal Reserve's independence and dismissed criticism regarding his relationship with the White House. The US Dollar responded positively to these developments, adding pressure to silver prices [1].
From a technical perspective, XAG/USD is trading at $77.75, with bearish pressure increasing after breaking below the ascending channel established since late March. Technical indicators on the 4-hour chart, such as the Relative Strength Index (RSI) remaining below 50 and the Moving Average Convergence Divergence (MACD) in negative territory, support a bearish outlook. Bulls are capped below the April 19 low at $78.50, with further resistance at the reverse trendline near $80.65 and the April 20 high at $80.60. On the downside, a break below Tuesday's low of $75.40 could shift focus toward the mid-April lows around $72.60 and the psychological $70.00 level [1].
CONCLUSION
Silver prices are currently under bearish pressure, constrained by resistance at $78.50 and a stronger US Dollar following positive US economic data and Fed-related developments. Geopolitical tensions in the Middle East add uncertainty, keeping investors cautious. Technical indicators suggest sellers are gaining control, with further downside possible if key support levels are breached.