Select Language

Silver stalls as markets weigh Israel-Iran tensions and the US Dollar

Breaking news

Silver stalls as markets weigh Israel-Iran tensions and the US Dollar

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.17 03:01
Silver stalls as markets weigh Israel-Iran tensions and the US Dollar

update 2025.06.17 03:01

  • Silver prices are stalling above the key psychological level of $36.00, now acting as near-term support following June's breakout.
  • Geopolitical tensions between Israel and Iran remain a key driver, with markets watching for signs of de-escalation that could influence Silver's safe-haven demand.
  • XAG/USD remains sensitive to movements in the US Dollar and Treasury yields, ahead of Wednesday's FOMC decision and economic projections.

Silver prices are stalling above $36.00 on Monday, with bullish momentum taking a breather after a sharp multi-week rally. 

At the time of writing, XAG/USD remains up more than 10% for the month, although the metal now appears to be consolidating as it searches for a fresh directional catalyst.

The US Dollar has lost ground despite the geopolitical backdrop, with its traditional safe-haven status coming under pressure amid political instability and uncertainty over trade policy. 

A softer USD has helped keep Silver supported near $36.38, following a modest 0.2% gain from Friday. 

The conflict between Israel and Iran, which is on its fourth day, has triggered waves of safe-haven demand. However, signs of a possible diplomatic opening have started to emerge. Reuters and The Wall Street Journal reported that Iran sent messages via Arab intermediaries indicating a willingness to resume nuclear talks with the United States. 

This has introduced some hope for de-escalation, limiting further upside in precious metals. However, some Iranian officials have denied these reports.

Additionally, growing speculation around a potential Federal Reserve (Fed) rate cut later this year, particularly ahead of Wednesday's FOMC meeting, further enhanced Silver's appeal as a non-yielding hedge asset, helping it hold elevated levels despite fluctuating risk sentiment tied to the Middle East conflict.

Silver technical analysis: XAG/USD holds firm above $36.00

Silver (XAG/USD) is trading near $36.38 on Monday, holding firm after a strong rally through June. 

Last week's breakout cleared long-term resistance at the October 2012 high of $35.92, which now acts as immediate support. 

Price action is showing signs of consolidation below the year-to-date high of $36.89, posted last Monday. 

Silver (XAG/USD) daily chart

The daily Relative Strength Index (RSI) remains elevated at 68, suggesting bullish momentum is still in play but nearing overbought territory. A sustained break above $36.89 could pave the way for a move toward long-term resistance at $37.49. 

Conversely, a drop below $35.92 would expose downside risks, with the next key support level seen at $34.79 and the 38.2% Fibonacci retracement at $33.68, which is closely aligned with the 50-day Simple Moving Average (SMA).

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply - Silver is much more abundant than Gold - and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals - more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers' demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.


Date

Created

 : 2025.06.17

Update

Last updated

 : 2025.06.17

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

JPY is steady on the day - Scotiabank

The Japanese Yen (JPY) is quietly consolidating its recent pullback, attempting to find support following a poor start to July, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:51

GBP up modestly in quiet trade - Scotiabank

The Pound Sterling (GBP) is up a modest 0.2% and outperforming most of the G10 currencies in quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:47

EUR/GBP wobbles around 0.8630 amid uncertainty over US-EU trade deal

The EUR/GBP pair trades in a tight range around 0.8625 during the European trading session on Thursday.
New
update2025.07.10 20:47

USD/CHF pares previous losses and returns above 0.7950 amid a stronger US Dollar

The US Dollar is featuring a moderate recovery on Thursday, paring some losses after the previous two days' reversal. The pair, however, remains trading near long-term lows, with upside attempts capped below the 0.8000 psychological level.
New
update2025.07.10 20:41

EUR consolidates in low 1.17s - Scotiabank

The Euro (EUR) is quietly consolidating in the low 1.17s and extending this week's narrow range, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:32

CAD is little changed on the day - Scotiabank

The Canadian Dollar (CAD) remains range-bound but has made a little progress overnight, reflecting the generally softer US Dollar (USD) undertone, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:26

USD slips as markets digest tariff news - Scotiabank

The US Dollar (USD) is trading a little more defensively overall this morning as markets digest the latest round of US tariff news--a hefty 50% on copper and 50% on Brazil, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:24

Gold Price Forecast: XAU/USD is testing trendline resistance at $3,325

Gold (XAU/USD) found buyers right below the $3,300 level on Wednesday to regain some of the ground lost over the previous days.
New
update2025.07.10 20:00

AUD/USD jumps to near 0.6570 as RBA needs confidence over inflation cooling down

The AUD/USD climbs to near 0.6570 during the European trading session on Thursday.
New
update2025.07.10 19:45

USD/CNH: Chance of edging lower and testing 7.1720 - UOB Group

Softening underlying tone may lead to US Dollar (USD) edging lower and testing 7.1720 against Chinese Yuan (CNH). In the longer run, increasing momentum suggests USD may rise, but it is too early to expect 7.2000 to come into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.07.10 19:13

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel