Silver (XAG/USD) remains rangebound on Friday as investors avoid aggressive positioning amid uncertainty surrounding U.S.-Iran negotiations. As of this writing, the white metal is trading near $76.00 and is likely to end the week unchanged.
Referring to the latest developments, a spokesman for Iran’s Ministry of Foreign Affairs said: “We cannot necessarily say that we have reached the point where an agreement is close,” according to Tasnim news agency. The spokesman also said: “Details related to the nuclear issue are not being discussed at this stage,” according to the Islamic Republic News Agency (IRNA), adding: “We will not reach any conclusions if we try to delve into the details of highly enriched uranium in Iran.”
Sources told Sky News Arabia that an agreement was reached in the negotiations in Tehran on general issues regarding the nuclear documentation.
Curbing Iran’s nuclear ambitions remains one of Washington’s key demands for reaching an agreement, and the latest comments highlight that major differences remain between the two sides, keeping traders skeptical that a final agreement can be reached.
Following fresh news reports, the US dollar is rebounding from intraday highs, although XAG/USD is struggling to attract significant buying interest as hawkish Fed expectations continue to limit growth.
Inflation concerns about elevated oil prices have led investors to increasingly price in the possibility of the Fed raising interest rates by the end of the year, with the latest data on inflation expectations from the University of Michigan (UoM) further supporting this view.
Technical analysis:
On the daily chart, XAG/USD remains below the Bollinger 20-day elementary moving average around $77.54, maintaining a near-term bearish bias despite price stabilization following the recent decline. Momentum readings are faint, with the Relative Strength Index (RSI) hovering just below the neutral level of 50, and the Moving Average Convergence Divergence (MACD) is negative, which collectively indicates that downward pressure remains even as volatility declines.
Upside, initial resistance is provided by the 20-day middle Bollinger Band near $77.54. To alleviate immediate selling pressure, a daily close above this barrier would be necessary, with an upper Bollinger Band up at $86.92 providing a more distant bullish target.
On the other hand, the lower Bollinger Band near $68.17 offers another noteworthy support zone should bears regain traction, and a break below this low would expose deeper losses in a broader correction phase.
(The technical analysis for this story was written with the aid of an AI tool.)
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 robust 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 boost in demand can boost 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, vast 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 aid 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.
