Silver Price Retreats as Middle East Tensions Ease
Silver price (XAG/USD) experiences a significant sell-off to $27.30 as investors reassess geopolitical risks in the Middle East. Iran's comments signaling no immediate retaliation against Israel ease concerns of a wider conflict, reducing safe-haven demand.
Key Factors:
- Geopolitical Relief: Silver loses its safe-haven appeal as the potential for escalating conflict diminishes.
- Risk-On Sentiment: Improving market sentiment boosts riskier assets, weighing on Silver.
- Strengthening USD: Rising US Treasury yields and hawkish Fed expectations support the US Dollar, adding pressure to Silver prices.
- Delayed Rate Cuts: The CME FedWatch tool reflects shifting expectations for Fed rate cuts from June to September, contributing to USD strength.
Technical Analysis:
- Support at 20-day EMA: Silver price retreats towards the 20-day Exponential Moving Average (EMA) near $27.20, which acts as a crucial support level.
- Key Support: April 14 high ($26.09) offers additional downside cushion.
- RSI Retreat: The Relative Strength Index (RSI) moves lower, suggesting fading bullish momentum, though the overall bias remains bullish.