-1.49% for Silver as reduced safe-haven demand on US-Iran deal uncertainty hits sentiment

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Silver slides 1.49% to $64.73 today

Highlights

The Fed's rate hold and tightening signal boosted the US dollar, accelerating silver futures liquidation due to higher non-yielding asset costs.
Ongoing US-Iran peace deal uncertainty and synchronized global bullion losses further reduced investor appetite for silver as a safe haven.
Silver remains under heavy bearish momentum with high selling pressure, expected to trade in the $61.64–$67.82 range with minimal rebound likelihood.

Fed tightening triggers silver outflows amid rising dollar strength

The US Federal Reserve's decision to keep rates unchanged while signaling further tightening has led to a stronger US dollar and triggered a selloff in silver futures, according to Deccanchronicle. This shift raised the opportunity cost of holding non-yielding assets like silver, intensifying downward momentum. Ongoing uncertainty surrounding the US-Iran peace deal further diminished safe-haven demand, while heavy silver selling followed the Fed's announcement and broader losses in global bullion markets, according to Economictimes Indiatimes.

Momentum weakens as bearish indicators cluster below resistance

XAG is trading below the MA-20, MA-50, and MA-200 on the H4 chart, highlighting ongoing technical pressure. The Ichimoku Kijun level at $67.66 serves as immediate resistance, capping any possible rebound attempts. Momentum indicators, including MACD and ADX, support a bearish outlook, while RSI and CCI hold in Sell territory. BBP shows an Oversold condition, and both Stoch RSI and Awesome Oscillator are neutral, pointing to some divergence among oscillators. Notably, the price sits close to the high of the current intraday range on elevated volatility.

Downside scenario favored as volatility bands constrain upside

In the next two to three trading days, XAG is expected to fluctuate within a volatility band of $61.64 to $67.82. The probability of a significant move higher is considered very low, while downward extension is much more likely. If price breaks above $67.66, a squeeze higher may follow; a drop below $61.64 would signal renewed downside momentum.

Anton Kharitonov, expert at Traders Union, views silver’s near-term trend as decisively bearish. The analyst sees technical weakness, persistent dollar strength, and fading safe-haven demand as key constraints. He notes that immediate resistance at $67.66 limits any upside, while breakdown risks remain high. "Unless price reclaims $67.66, the setup favors further declines — staying defensive is prudent here."

Earlier, analysts noted that silver was under persistent downside pressure as a result of a hawkish Federal Reserve stance and softening safe-haven demand. The latest developments reinforce this bearish outlook, and traders should closely monitor any break below $61.64, which could trigger a notable acceleration in downside momentum.

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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