Silver (XAG/USD) builds on its recent recovery on Friday, with prices climbing for a third consecutive day as lingering geopolitical risks fuel safe-haven flows. At the time of writing, XAG/USD is trading near $82.80, on track to post a weekly gain of more than 5%.
The white metal has regained bullish traction after sliding to nearly two-week lows earlier in the week and continues to advance despite a broadly stronger US Dollar, suggesting dip buyers remain active.
The latest leg higher comes as tensions between the United States and Iran escalate, with fears mounting over potential US military action amid a significant American military buildup in the Middle East.
On Friday, US President Donald Trump said he is considering a limited strike on Iran. The remarks followed his warning on Thursday that Tehran must reach a “meaningful deal” or face “bad things,” adding that he expects clarity on a new nuclear agreement within the next 10 to 15 days.
Beyond geopolitics, underlying fundamentals remain constructive. Steady institutional inflows and resilient industrial demand, along with sustained expectations of lower interest rates in the United States later this year, keep the broader outlook for Silver tilted to the upside.
From a technical perspective, the 4-hour chart points to improving short-term momentum. Price is hovering near the upper Bollinger Band as the bands begin to widen, signaling rising volatility and building bullish pressure following a prior period of contraction.
The Moving Average Convergence Divergence (MACD) extends above the Signal line and stands in positive territory, with a widening histogram suggesting strengthening bullish momentum.
Meanwhile, the Relative Strength Index (RSI) is holding near 66, reflecting firm upside traction while remaining below overbought territory, leaving room for further gains.
On the upside, a sustained break above the upper Bollinger Band near $82.39 could pave the way for a continuation toward the $86.00 region, with the next key resistance seen around $92.00.
On the downside, the 20-period SMA (Bollinger middle band) at $77.34 provides immediate support. A decisive break below this level would expose the lower Bollinger Band around $72.16, followed by the February swing low near $64.00
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