Silver trades flat after inflation concerns rise with crude oil surge

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Silver slips 0.09% today to $60.93

Highlights

Silver trading has been shaped by inflation concerns tied to rising crude oil prices and renewed US-Iran tensions.
Geopolitical uncertainty and shifting macroeconomic factors have increased demand for safe-haven assets like silver.
Silver trades at $60.93 within a $58.97 to $62.89 range, with technical signals favoring continued downside over a breakout.

Inflation and geopolitics drive safe-haven demand for silver

Rising inflation concerns, particularly those tied to surging crude oil prices and renewed fears of conflict between the US and Iran, have shaped the market environment for Silver, according to Fxstreet. These developments contribute to heightened risk awareness among investors, affecting demand for perceived safe-haven assets. The evolving geopolitical and macroeconomic landscape has become a significant backdrop for recent market dynamics.

Bearish momentum persists as price tests key resistance

Technical levels show XAG/USD holding above its MA-20 while remaining under both its MA-50 and the long-term MA-200 at $70.43. The Ichimoku Kijun sits at $61.48, marking the nearest resistance. Momentum is mostly bearish, as both MACD and ADX display strong sell signals, with RSI also indicating selling pressure. However, Stoch RSI, CCI, and Bull/Bear Power all register overbought readings, likely reflecting intraday buyer activity against an overall weak trend and moderate volatility.

Rangebound outlook as consolidation and downside risks prevail

In the coming sessions, Silver is expected to remain within a range of $58.97 to $62.89, in line with typical volatility bands. The baseline scenario sees XAG/USD consolidating in a sideways pattern. If price overcomes $61.48, an advance toward the upper end of the range is possible, while a drop below $58.97 could lead to further losses. Probability analysis suggests a 27% likelihood of an upward move and a 73% chance for a downward continuation.

Anton Kharitonov, expert at Traders Union, highlights that Silver remains technically weak despite some short-term stabilization. He sees elevated risks from inflation and geopolitical concerns, with momentum and sentiment both skewed to the downside. A sustained move above $61.48 is needed to shift the outlook, while the base case is for sideways consolidation within the broader negative trend. "Given the persistent seller pressure and prevailing macro uncertainty, I remain cautious until price action confirms a clearer reversal signal."

Earlier, analysts noted that cross-asset market movements reflected investor caution ahead of key U.S. economic data, with silver showing strength alongside other safe-haven assets. The current technical landscape highlights continued downside risk for silver, making the $61.48 resistance level critical for gauging a potential break from its prevailing bearish trend.

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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