Silver (XAG/USD) traded flat on Friday, remaining around $75.60 and on track to end the week virtually unchanged, despite improving market sentiment regarding a potential US-Iran peace deal and a softer US Dollar [1]. US President Donald Trump announced that the naval blockade on Iranian ports would be lifted, and traders are now awaiting final approval of a reported 60-day memorandum of understanding (MOU) that would extend the current ceasefire and reopen the Strait of Hormuz [1].
The US Dollar Index (DXY) fell to around 98.80 after reaching a seven-week high of 99.54 on Thursday, reflecting the Greenback's weakness in response to the news [1]. However, uncertainty persists as Iran’s Fars News Agency rejected Trump’s comments, stating that no final decision has been made and the proposed agreement is still in the final stages of ratification in Iran [1].
Silver's subdued price action contrasts with Gold, which climbed more than 1.5% on Friday, as traders remain cautious and avoid aggressive bets pending further clarity on the potential deal [1]. Technical analysis shows XAG/USD holding below the short-term trend marker, with the 50-day simple moving average (SMA) at $75.85 acting as immediate resistance and the 100-day SMA at $81.32 as a higher cap [1]. Momentum indicators such as the Relative Strength Index (RSI) near 47 and MACD readings below zero suggest limited bullish pressure [1].
A daily close above the 50-day SMA at $75.84 would signal renewed buying interest, targeting the 100-day SMA at $81.32, while the broader bullish structure remains intact as long as prices stay above the 200-day SMA at $66.94, which serves as key support [1].
CONCLUSION
Silver prices remained flat despite positive sentiment around a potential US-Iran deal and a weaker US Dollar, as uncertainty over the agreement's finalization kept traders cautious. Technical indicators suggest limited bullish momentum in the near term, with key resistance and support levels in focus. The market is likely to remain in consolidation until more clarity emerges on the geopolitical front.