Silver Price Stuck in Neutral as US-Iran Tensions Weigh on Market
The price of Silver (XAG) has been trading flat at $64.34 after a modest rise in the latest session, but it's still below its key moving averages, indicating that the short-term up move was within a broader trend framework.
As oil prices have increased due to heightened US-Iran tensions, concerns about potential energy-driven inflation are rising, which may lead the US Federal Reserve to delay rate cuts or act more cautiously on policy. This uncertainty affects non-yielding assets like Silver, reducing their relative investment appeal by increasing the opportunity cost of holding them.
The technical analysis suggests that XAG/USD is expected to trade within a volatility band of $61.19 to $67.49 over the next several sessions, with a 61% chance for prices to drift lower and a 39% chance for an upward move. The current setup reinforces a cautious outlook, with prevailing seller dominance and oscillators remaining oversold.
The break above $67.2 or below $61.19 is pivotal for determining the next directional move, as analysts have noted that Silver faced persistent downside pressure amid technical weakness and heightened geopolitical risks.