Disruptions to Middle Eastern energy flows pressure Silver lower

Traders Union
All News
Financial News
Silver slides 6.90% today to $70.13

Highlights

Escalation of the Iran conflict lifted the US dollar and drove a 5.9–6.5% selloff in silver futures, undermining safe-haven flows.
Sustained Middle East tensions keep oil above $100, fueling inflation and erasing Fed rate cut expectations, pressuring silver as industrial demand falters.
Silver trades below key short-term averages amid bearish momentum and high volatility, with an expected sideways range of $68.20–$78.01 in the coming days.

Industrial demand and volatility strained by Iran conflict escalation

A renewed escalation in the Iran conflict has driven a sharp rise in the US dollar and facilitated a 5.9–6.5% selloff in silver futures on Thursday, as President Donald Trump signaled that no end to hostilities is in sight and reaffirmed American strategic objectives in the region. The Middle East war is sustaining elevated oil prices above $100, triggering persistent inflation and removing expectations for US Federal Reserve rate cuts in 2026, which continues to pressure silver as an industrial commodity. Disruptions to Middle Eastern energy flows have directly throttled East Asian manufacturing sectors vital to silver demand, such as semiconductors and solar panel production, undermining the asset’s traditional safe-haven status and intensifying market volatility.

Bearish momentum persists as oscillators signal intraday uncertainty

Daily momentum remains bearish, with the MACD and ADX both signaling strong downward movement. RSI is neutral, while Stoch RSI and CCI highlight a combination of brief overbought signals and underlying oversold pressures on shorter timeframes. BBP reflects firm seller dominance throughout the session. Intraday, a pronounced gap down and high volatility have left the price near today’s low, with oscillators and momentum indicators diverging, pointing to ongoing uncertainty in short-term direction and confirming clear bearish momentum intraday.

Bullish breakout favored if $75.52 resistance breached amid volatility

For the next five trading days, XAG is expected to trade within a $68.20 – $78.01 volatility band relative to current levels. There is a very high probability (over 80%) of a price increase, given prevailing bullish signals on the weekly timeframe across the moving averages, RSI, ADX, and MACD. The most likely scenario is sideways movement between $68.20 and $78.01, with a bullish breakout possible above $75.52 toward $78.01. If support at $68.20 fails, a bearish scenario could develop, risking a deeper decline toward long-term moving average levels.

Anton Kharitonov, analyst at Traders Union, sees significant selling pressure in silver as technical momentum and macro headwinds reinforce downside risks. He notes the Iran conflict and elevated oil prices have fueled a stronger dollar, hurting industrial demand and increasing volatility. Support at $68.20 is critical, and upside may only be considered above $75.52. "Until silver breaks back above $75.52, I remain cautious and view any rebound as temporary within a broader bearish context."

Earlier, analysts noted that silver was entrenched in a bearish trend, reflecting persistent downward momentum despite mixed signals from select technical indicators. The current escalation in geopolitical risks and inflationary pressures has intensified volatility and reinforced near-term bearish momentum, making the $68.20 support an essential level to monitor for traders amid heightened downside risks.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.