Silver prices (XAG/USD) registered modest gains on Tuesday, climbing 0.55% to trade at $68.86 after briefly dipping to a three-day low of $67.43 and reclaiming the 100-day Simple Moving Average (SMA) at $68.38 [1]. The technical outlook for silver is tilted to the upside in the short term, with momentum indicators such as the Relative Strength Index (RSI) suggesting further gains, though upside is capped by the 200-day SMA at $72.22 [1]. Should XAG/USD rise above $70.00, it could target the 200-day SMA, with further resistance at $75.00 and $80.00. Conversely, a drop below the 100-day SMA could see support tested at $64.50-$65.00, with further downside to $62.19 and the 50-day SMA at $61.34 [1].
In contrast, gold (XAU/USD) pulled back from the $4,700 level, trading at $4,641 and down 0.2% during the North American session as bullish momentum stalled and the RSI signaled overbought conditions [2]. The retreat in gold was attributed to improving geopolitical headlines, specifically hopes for an end to the US-Iran conflict after US officials confirmed the US Navy cleared the Strait of Hormuz [2]. Gold faced resistance near $4,700, and technical indicators suggest further downside if the RSI falls below the overbought threshold, with support at $4,600, the 200-day SMA at $4,519, and the 100-day SMA at $4,379 [2].
US economic data provided a mixed backdrop: July building permits rose 4.3% to 1.433 million, beating June's contraction and estimates, while the Conference Board Consumer Confidence came in at 90.2, missing expectations [2]. The ADP Employment Change 4-week average improved to 11.75K from 9.5K [2]. Boston Fed's Susan Collins maintained a hawkish tone, citing persistent inflation concerns, while money markets assigned a 43% probability to a 25-basis-point rate hike at the September Federal Reserve meeting [2]. Market participants are now awaiting the release of the Core Personal Consumption Expenditures (PCE) Price Index and a speech by the new Fed Chair, Kevin Warsh, at the Jackson Hole Symposium [2].
Overall, silver's technical recovery above the 100-day SMA contrasts with gold's pullback from key resistance, reflecting shifting investor sentiment amid evolving geopolitical and economic developments [1][2].
CONCLUSION
Silver's modest gains and technical recovery signal short-term bullishness, while gold's retreat from $4,700 highlights waning safe-haven demand amid improving geopolitical conditions. Market participants remain attentive to upcoming US economic data and Federal Reserve commentary, which could further influence precious metals' direction.