Silver (XAG/USD) rebounds on Monday after briefly falling to year-to-date lows early in the Asian trading session as investors digest conflicting reports on geopolitical tensions related to the U.S.-Israel war with Iran. At the time of writing, XAG/USD is trading near $68.00, rebounding from an intraday low near $61.01, which is the weakest level since December 2025.
The white metal pared earlier losses as the US dollar (USD) and Treasury yields fell following US President Donald Trump’s decision to delay planned attacks on Iran’s energy infrastructure. Trump said he had directed the War Department to postpone attacks on Iranian power plants for five days, depending on the outcome of ongoing discussions.
But the benefits remain confined after Iranian officials downplayed the prospect of negotiations. Parliament Speaker Mohammad Bagher Ghalibaf said no talks had been held with the United States. Meanwhile, Iran’s Foreign Ministry reiterated that its position on the Strait of Hormuz and the conditions for ending the war remain unchanged, adding that Tehran did not respond to messages from other countries regarding US requests for talks, according to IRNA.
On the daily chart, the short-term bias remains bearish as the price is trading below the 50-day SMA at $86.20 and the 100-day SMA around $73.80. However, the 200-day SMA near $57.60 continues to decline higher, indicating that the broader uptrend remains unchanged for now.
Dynamics indicators reinforce the downward outlook. The relative strength index (RSI) is hovering around 34, remaining below 50, indicating continued bearish momentum. Meanwhile, the moving average convergence divergence (MACD) remains below the signal line and in negative territory, with a moderately negative histogram, suggesting that sellers will continue to dominate in the tiny term.
On the positive side, there is immediate resistance at the 100-day SMA near $73.80, followed by the $78.00-$80.00 zone that previously acted as a key breakout area. A sustained move above the 50-day SMA at $86.20 would be needed to reverse the current bearish structure.
On the other hand, immediate support lies at Monday’s low near $61.01, followed by the 200-day SMA near $57.60. A break below this level could expose deeper losses towards the psychological level of $50.00.
Silver FAQs
Silver is a precious metal that investors like to trade. Historically, it has been used as a store of value and a medium of exchange. Although less popular than gold, investors may turn to silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during periods of high inflation. Investors can buy physical silver in coins or bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can fluctuate due to many factors. Geopolitical instability or fear of a deep recession may push silver prices higher due to its safe-haven status, although to a lesser extent than gold. As a non-yielding asset, silver tends to rise at lower interest rates. Its movements also depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAG/USD). A forceful dollar tends to keep the price of silver at bay, while a weaker dollar will likely push prices higher. Other factors such as investment demand, mining supply – there is much more silver than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in sectors such as electronics and solar energy, because it has one of the highest electrical conductivities of all metals – greater than copper and gold. An enhance in demand can enhance prices, while a decrease usually lowers them. The dynamics of the economies of the United States, China and India can also contribute to price fluctuations: in the case of the United States and especially China, immense industrial sectors utilize silver in various processes; in India, consumer demand for precious metals for jewelry production also plays a key role in pricing.
Silver prices usually follow the movements of gold. When gold prices rise, silver tends to follow suit because their status as safe-haven assets is similar. The gold-to-silver ratio, which shows the number of ounces of silver needed to equal the value of one ounce of gold, can support determine the relative valuation of the two metals. Some investors may view a high ratio as an indicator that silver is undervalued or gold is overvalued. On the contrary, a low ratio may suggest that gold is undervalued relative to silver.
