Silver (XAG/USD) trades with a downside bias on Thursday, coming under pressure as macro headwinds stemming from the ongoing US–Israel war with Iran weigh on sentiment. At the time of writing, XAG/USD is trading around $72.82, down nearly 3.0% on the day after briefly slipping below the $70 handle during the European session.
The decline comes as rising geopolitical tensions in the Middle East continue to support the US Dollar (USD), while higher Oil prices fuel inflation concerns and reinforce expectations for a tighter monetary policy stance across major central banks, particularly the Federal Reserve (Fed).
Expectations that the Fed will keep interest rates higher for longer and delay rate cuts are weighing on the non-yielding metal, offsetting its appeal as a safe-haven asset.
From a technical perspective, XAG/USD remains bearish in the near term, with repeated rejection at the 100-day Simple Moving Average (SMA) around $75.63 capping upside attempts. However, the pair continues to hold above the 200-day SMA at $59.06, indicating that the broader uptrend remains intact despite the recent weakness.
The Relative Strength Index (RSI) at 43.64 remains below the 50 mark after approaching oversold territory, indicating weak momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator (12, 26, 9) has moved back above its signal line. Still, it remains below the zero line, suggesting only modest upside attempts within a still-negative momentum backdrop.
Initial resistance is seen at the 100-day SMA around $75.60, with a daily close above this level opening the door toward the 50-day SMA near $82.90. A stronger recovery could then face an additional hurdle at the February swing high around $96.62.
On the downside, immediate support lies in the $70-$68 zone, followed by the March low near $61.01, which closely aligns with the 200-day SMA.
Comments
Log in or sign up to join the conversation.