Silver rebounds as Middle East tensions revive safe-haven demand
After four and a half weeks of declines, silver has finally received an external catalyst capable of supporting demand for precious metals.
That catalyst came in the form of renewed U.S. military strikes against Iran and another closure of the Strait of Hormuz. Although silver remains primarily an industrial metal, market participants have historically viewed it as a safe-haven asset alongside gold during periods of geopolitical uncertainty.
Additional support for XAG is coming from the risk of further increases in oil prices. While crude oil has not posted a significant rally following the latest escalation, prices remain elevated.
Any disruption to shipments through the Strait of Hormuz could reinforce inflation expectations and increase demand for precious metals as a store of value.
Technical signals point to a short-term rebound
As noted in previous analysis, the break below the 200-day simple moving average (SMA) accelerated silver's decline into the $$61.00–63.80 target zone. However, support held, and the price has since recovered toward $63.70.The RSI (14) has firmly entered oversold territory, signaling the potential for a short-term rebound in the coming days.
The most likely recovery target is the local resistance zone between $66.00 and $67.40.
Despite signs of a short-term rebound in XAG, the Gold/Silver Ratio continues to recover from extremely low levels. This suggests that safe-haven capital is still flowing primarily into gold rather than silver.
However, traders should remain cautious. "Catching a falling knife" is always a high-risk strategy. If silver breaks below $61.20, the probability of an accelerated decline toward $56.80 would increase significantly.
Geopolitical risks become silver's key catalyst
Any near-term rebound is likely to represent a recovery from oversold conditions rather than the beginning of a new bullish trend.
Traders continue to closely monitor developments surrounding Iran, as any further escalation could restore a stronger safe-haven premium to the precious metals market.
At this stage, macroeconomic and geopolitical factors are becoming increasingly important drivers of silver prices. These developments are likely to play a decisive role in determining the direction of the metal through the second half of June.
Latest Silver News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
