Silver Falls from Highs
Silver prices continue to slide from recent highs on Thursday as market uncertainty, fuelled by rising tensions in the Middle East and a shifting outlook on the Fed, drive trader sentiment. Earlier this week, silver hit its highest level since 2012, supported by a blend of safe-haven demand, strong industrial usage, and a tightening supply outlook. However, developments through the week have seen silver shedding some these gains.
US Planning Iran Attack?
The mood in the market soured through the back of the week with reports suggesting the US may be preparing for military action against Iran. The news is stoking concerns about wider regional instability and potential disruptions. Despite this, USD has emerged as the preferred safe haven with silver prices tracking the move lower in gold for now.
Fed Impact
USD has also been boosted this week by the Fed which kept interest rates on hold this month and adopted a more cautious policy stance. Despite softer inflation recently, Powell flagged upside risks, particularly the potential for President Trump’s tariffs to drive up inflation and complicate the economic picture. Against this backdrop the Fed said that it would need to be more cautious with any future policy adjustments. If USD remains supported near-term this should keep silver prices anchored lower as gold remains offered.
Technical Views
Silver
The rally in silver has stalled for now with price reversing back under the 36.6980 level. While below here and with momentum studies turning south, focus is on a deeper correction with 35.6819 the next support to note. Bulls will need to defend this level to keep the broader bullish bias intact and prevent a deeper drop towards 34.8895.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.