Silver prices plunged nearly 3% on Tuesday, dropping to $60.26 after reaching a peak of $62.16 earlier in the session. The sharp decline came as market sentiment deteriorated following Iranian attacks on two vessels in the Strait of Hormuz, escalating Middle East tensions and triggering risk-off trading across commodity markets.
The XAG/USD pair is showing bearish technical signals with the formation of an “evening star” candlestick pattern, a traditional reversal indicator that suggests further downside momentum may be developing. Traders are watching this pattern closely as it typically signals the end of an uptrend and the beginning of a potential selloff.
The geopolitical developments in the strategically critical Strait of Hormuz are weighing heavily on precious metals as investors reassess risk exposure. The shipping corridor handles roughly one-fifth of global oil supply, and any disruption threatens broader market stability.
FXnCO Insight
Traders should monitor support levels around $60 closely while maintaining defensive positions until Middle East tensions ease and the evening star pattern either confirms or fails.
Source: FXStreet