Silver (XAG/USD) experienced a significant rally on Monday, surging over 7% and breaking through key technical resistance levels at $83.05 and $85.00, reaching as high as $86.00 per troy ounce, its highest level in the last two months [1]. The bullish momentum was underscored by a sharp spike in the Relative Strength Index (RSI), which approached overbought territory, suggesting further upside potential. Buyers are now targeting the $90.00 mark, with additional resistance at the March 10 daily high of $90.03 and the March 2 swing high of $96.62. On the downside, support is seen at $83.05, with further levels at the 100-day SMA ($80.22) and 50-day SMA ($77.04) [1].
Meanwhile, gold (XAU/USD) posted a modest gain of 0.30% on Monday, trading at $4,726 after rebounding from daily lows of $4,648 [2]. The rise in gold prices was attributed to increased haven demand as geopolitical tensions escalated following US President Donald Trump's rejection of Iran's proposal for conflict resolution, which he deemed "totally unacceptable" [2]. Iran's demands included compensation for war damage, control of the Strait of Hormuz, unfreezing of funds, and ending the US Navy blockade, but did not address the delivery of nuclear stockpiles, a key US demand. Reports indicated that President Trump was consulting with his national security council and considering the resumption of military action [2].
The heightened geopolitical risk also pushed US crude oil prices up by 3.60%, with West Texas Intermediate (WTI) reaching $98.09 per barrel. The US Dollar Index (DXY) rose by 0.10% to 97.94 [2]. In terms of economic data, US Existing Home Sales edged up 0.2% in April to a seasonally adjusted annual rate of 4.02 million. Market participants are awaiting US inflation data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) scheduled for release later in the week [2].
From a technical perspective, gold is expected to remain in a consolidation phase, with resistance at the 50-day SMA ($4,769) and 100-day SMA ($4,772), and support at $4,700 and the 20-day SMA ($4,694) [2]. Morgan Stanley's Global Head of Macro Strategy, Matt Hornbach, stated that the bank does not anticipate the Federal Reserve to cut interest rates in 2026, a view shared by money market participants who expect the Fed to remain on hold this year [2].
CONCLUSION
Silver's sharp rally above key resistance levels signals strong bullish momentum, while gold's modest gains reflect increased safe-haven demand amid rising geopolitical tensions. Both metals are benefiting from heightened uncertainty, with silver showing more pronounced upside. Market participants are closely watching upcoming US inflation data and central bank policy signals for further direction.