Silver (XAG/USD) traded in a narrow range around $75.20 on Thursday, remaining near two-week lows as traders closely monitored developments related to the US-Iran conflict [1]. Earlier in the day, silver prices came under pressure following a Reuters report that Iran’s Supreme Leader had ordered near-weapons-grade uranium to remain inside the country, which dampened hopes for progress in negotiations. However, silver trimmed some of its losses after an Iranian official denied the report in comments to Al Jazeera [1].
Despite the partial recovery, silver’s upside remained capped by a stronger US Dollar and elevated US Treasury yields, as market participants anticipated that the Federal Reserve might need to raise interest rates to contain inflationary pressures stemming from higher oil prices [1]. US President Donald Trump stated on Wednesday that talks with Iran were in the “final stages,” but warned that military action could resume if no deal is reached, adding that Washington was willing to wait a few more days for the “right answer” from Tehran [1].
From a technical perspective, XAG/USD maintains a bearish near-term bias, trading below the 20-period Bollinger Simple Moving Average (SMA) at $77.46 and well under the upper Bollinger band at $86.89. The Relative Strength Index (RSI) slipped below the 50 line to 45.9, the MACD indicator extended deeper into negative territory, and the Average Directional Index (ADX) near 15 indicated a weak but bearish trend [1]. Immediate resistance is at the 20-period Bollinger SMA ($77.46), with further resistance at $86.89 and $95.00. On the downside, support is found at the lower Bollinger band ($68.03), with a more substantial floor at $60.00 [1].
Overall, silver’s price action remains sensitive to geopolitical headlines and monetary policy expectations, with traders awaiting further clarity on US-Iran negotiations [1].
CONCLUSION
Silver prices remain under pressure due to geopolitical uncertainty and expectations of tighter US monetary policy. The market is likely to stay volatile as traders await further developments in US-Iran negotiations and signals from the Federal Reserve.