Silver slides over 1% as Iran missile attacks disrupt energy shipping

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Silver drops 1.14% today after Iran news

Highlights

Silver prices fell by 1.35% to $61.00 after reports of Iranian missile attacks on commercial vessels in the Strait of Hormuz heightened geopolitical risk.
Silver faced added downward pressure as surging oil prices and potential energy supply disruptions fueled market anxiety.
Technical outlook is bearish with dominant selling signals and silver likely to range between $58.60 and $64.08 over the coming sessions.

Geopolitical escalation and oil surge drive silver selloff

Silver prices (XAG/USD) have declined by about 1.35% to around $61.00 during Asian trading hours as geopolitical tensions have escalated following reports that Iran fired at least two missiles at commercial ships in the Strait of Hormuz, a crucial passage for global energy supplies, according to Fxstreet. Tradingpedia also reports that this incident has placed additional downward pressure on silver due to increased oil prices and concerns over energy market disruptions.

Bearish momentum as technical indicators signal oversold conditions

On the h4 timeframe, XAG is trading below the 20-period moving average ($61.78) but remains above the 50-period moving average ($61.24). On the daily chart, price stays well below the 200-period moving average ($76.67). The Ichimoku Kijun lines up immediate resistance at $61.82. Momentum indicators show bearish conditions: the Moving Average Convergence Divergence (MACD) and the Average Directional Index (ADX) both confirm prevailing selling pressure. Oversold readings are signaled by the Relative Strength Index (RSI), Commodity Channel Index (CCI), and Bull/Bear Power, while Stochastic RSI remains neutral, suggesting the potential for short-term oscillation. The Awesome Oscillator also points to continued downside momentum.

Rangebound outlook with downside risk amid sideways price action

In the short term, XAG is expected to fluctuate within a $58.60 to $64.08 band, reflecting typical volatility at current price levels. The probability of further downside stands at 53%, which marginally outweighs the potential for an upward move, given at 47%. The most likely scenario is for XAG/USD to drift sideways within this range, with a bullish turn only expected should the price break above immediate resistance. If support fails, a deeper retracement toward the lower end of the range is likely.

Viktoras Karapetjanc, Senior Analyst at Traders Union, sees silver (XAG/USD) trading under macro pressure from heightened geopolitical tensions. He notes that risk-off sentiment has intensified after Iran’s missile attacks in the Strait of Hormuz, amplifying volatility in commodities and pushing silver below key moving averages. The analyst highlights that silver is likely to remain volatile, with a modest probability leaning toward further downside unless immediate resistance is reclaimed. In Karapetjanc’s view, fundamentals should support eventual stability given silver’s intrinsic value in uncertain markets. "If silver holds the $61.24 support, I see potential for a reversal once global risk sentiment calms," he adds.

Previously it was reported that silver was experiencing a pause in momentum as cautious trading and technical signals pointed toward range-bound consolidation. The latest developments not only reinforce the bearish bias amid heightened geopolitical uncertainty but also introduce the risk of a sharper move should escalating tensions provoke a decisive break outside the established trading band.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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