Silver (XAG/USD) experienced a sharp decline on Thursday, falling below the $75.00 mark and reaching fresh 10-day lows as risk aversion intensified in the market [1][2]. According to FXStreet data, silver traded at $74.54 per troy ounce, representing a 4.06% drop from the previous day's price of $77.70 [2]. Despite this recent downturn, silver prices have still increased by 4.87% since the beginning of the year [2].
The decline in silver prices coincided with a strengthening US Dollar and heightened geopolitical tensions between the United States and Iran. On Wednesday, Iran seized at least two ships, while the US military redirected at least three Iranian oil tankers in the Indian Ocean, escalating hostilities between the two nations [1]. Additionally, Iranian authorities announced the collection of the first tolls from ships passing through the Strait of Hormuz, though further details were not provided [1]. The absence of updates regarding the next round of US-Iran peace talks, which were scheduled to resume this week, contributed to growing investor unease [1].
Technical analysis indicates that XAG/USD has broken below the bottom of its bullish channel from late March lows, with Thursday's bearish candle confirming an impulsive reversal from a previous support area around $78.50 [1]. The Relative Strength Index (RSI) has dropped below the 50 line, and the Moving Average Convergence Divergence (MACD) is marginally positive but appears poised for a bearish crossover, suggesting fading bullish momentum [1]. Bears are now targeting support levels at $72.60, $70.00, and $68.30, while resistance is expected near $78.50 and $79.50 [1].
The Gold/Silver ratio rose to 63.03 on Thursday from 60.99 on Wednesday, indicating that silver has underperformed relative to gold during this period [2]. No forward-looking statements or analyst opinions were provided in the sources.
CONCLUSION
Silver prices have dropped sharply below $75.00 amid escalating US-Iran tensions and a stronger US Dollar, with technical indicators pointing to further downside risk. The market reaction has been significant, as evidenced by the 4.06% daily decline and a rising Gold/Silver ratio. Investors are closely watching geopolitical developments and technical support levels for further direction.