Silver prices retreated from intraday highs Tuesday as the US Dollar strengthened on continuing uncertainty surrounding US-Iran peace negotiations to end their three-month conflict. The precious metal XAG/USD is facing technical resistance at the 50-day simple moving average, struggling to reclaim upward momentum after failing to break through this key threshold.
The Dollar’s rebound is being driven by safe-haven demand as geopolitical tensions persist with no clear resolution in sight between Washington and Tehran. Silver, which typically moves inversely to USD strength, is bearing the brunt of this shift in sentiment. Traders are closely monitoring both the peace talks and technical levels as the metal tests support below the 50-day SMA.
The pullback suggests weakening bullish conviction in precious metals amid the current risk environment, with uncertainty continuing to favor Dollar positioning over alternative safe havens like silver.
FXnCO Insight
Traders should watch for a decisive break below the 50-day SMA as confirmation of further downside, with USD strength likely to keep silver under pressure until geopolitical clarity emerges.
Source: FXStreet