Silver (XAG/USD) pauses its intraday advance on Wednesday, consolidating below the daily high as initial optimism around US-Iran ceasefire efforts fades following Iran’s response. At the time of writing, XAG/USD is around $72.74, up about 2% on the day, attempting a recovery after falling to its lowest level since December 2025 near $61 earlier this week.
The white metal rose sharply after reports that the United States had sent Iran a 15-point plan aimed at ending the conflict, which lifted market sentiment and temporarily reduced geopolitical risk premium embedded in Oil prices. This helped ease immediate inflation concerns, reducing pressure on global central banks to raise interest rates and supporting the non-yielding metal.
However, the move proved short-lived after Iran pushed back against the proposal. State-linked media Press TV reported on Wednesday that Tehran will end the conflict strictly on its own terms.
Iran has outlined clear conditions for any agreement, including a full stop to attacks and assassinations, guarantees that the war will not restart, compensation for war damages, an end to fighting across all regional fronts, and recognition of its control over the Strait of Hormuz.
The ongoing uncertainty and lack of a clear resolution continue to support demand for the US Dollar (USD), while elevated Oil prices are keeping inflation risks alive. This backdrop is limiting follow-through buying in Silver even as bargain hunting emerges after a steep sell-off.
XAG/USD technical analysis
From a technical perspective, the daily chart shows XAG/USD’s near-term outlook as neutral to mildly bearish after nearing the 200-day Simple Moving Average (SMA). Prices remain below the 50-day SMA at $85.51 and the 100-day SMA at $74.33, with the latter capping immediate upside attempts.
The Relative Strength Index (RSI) at 40 points to subdued momentum and keeps downside pressure in focus, while the Average Directional Index (ADX) in the low 20s shows a weakening trend phase rather than an aggressive directional move.
On the upside, a decisive break above the 100-day SMA would help ease downside pressure, with the $80 psychological level coming into focus. A move above this could open the door toward the 50-day SMA, with a sustained break above it signaling a return to the prevailing uptrend.
On the downside, immediate support is seen at Tuesday’s low near $66.01, followed by Monday’s low around $61.01. A break below these levels would expose the 200-day SMA at $57.99. If the 200-day SMA fails to hold, a deeper corrective move could unfold.
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