Silver price challenges $67.35 resistance as Strait of Hormuz closure risk escalates

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Silver gains 2.19% to $66.09 today

Highlights

Geopolitical risks near the Strait of Hormuz are increasing demand for safe-haven assets, supporting recent buying in Silver.
Higher oil prices are increasing inflation concerns, driving renewed market expectations for US rate hikes and interest in metals.
Silver shows short- and medium-term bullish momentum with a projected range of $64.83 to $67.35 over the next 2 to 3 sessions.

Safe-haven inflows rise as Strait of Hormuz risks drive inflation jitters

Geopolitical tensions surrounding the risk of closure in the Strait of Hormuz are driving safe-haven demand in commodities, with Silver attracting buyers as uncertainty increases, according to Fxstreet. Elevated oil prices have added a layer of inflation risk, prompting renewed market expectations for US rate hikes and further fueling interest in metals as inflation hedges. Together, these factors are supporting stronger sentiment for Silver, against a backdrop of ongoing macroeconomic and geopolitical concerns cited by Fxstreet.

Upside momentum persists as overbought signals test technical resistance

On the technical front, XAG is trading above its MA-20 at $65.32 and MA-50 at $65.17, but remains below long-term resistance at MA-200 ($75.19). Immediate support is seen at the Ichimoku Kijun level of $65.57. Intraday indicators show persistent upside momentum: MACD, ADX, and Awesome Oscillator all point to continued strength. However, caution is warranted as RSI stands at 69.91, with Stoch RSI, CCI, and Bull/Bear Power all highlighting overbought conditions and current bullish dominance.

Further gains probable as consolidation range contains reversal risks

Over the next 2–3 trading days, XAG is likely to consolidate within the $64.83–$67.35 range, given typical volatility. There is a very high probability of further gains, while the likelihood of a downside reversal remains low. Should bullish momentum continue, a break above $67.35 would open the way for additional upside; conversely, a drop below $64.83 would suggest the onset of a deeper pullback.

Viktoras Karapetjanc, expert at Traders Union, sees Silver continuing to benefit from rising safe-haven demand as geopolitical risk and inflation concerns drive market sentiment. He believes underlying macro factors and strong momentum favor further upside, with technicals confirming the bullish tone. The analyst expects consolidation within the $64.83–$67.35 range, but sees a high probability of gains if external pressures persist. "With global tensions and inflation risks in play, Silver looks well-positioned to outperform in the near term."

Earlier, analysts noted that silver was exhibiting short-term bullish momentum supported by safe-haven demand and ongoing macroeconomic uncertainty. The current analysis further reinforces this outlook, with new geopolitical developments and technical signals emphasizing the importance of monitoring a potential breakout above $67.35 for signs of continued upside.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.