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Silver prices (XAG/USD) continued their decline for the second consecutive day, trading near $75.10 per troy ounce amid fading optimism surrounding U.S.-Iran relations. The drop follows recent geopolitical tensions and reduced investor appetite for risk-on assets, as markets remain cautious about potential disruptions in global energy and commodity markets. Analysts attribute the downward pressure to weaker demand for industrial metals and a stronger U.S. dollar, which often inversely affects precious metals.
The weakening of silver highlights broader market concerns about economic growth and central bank policies. A weaker dollar could provide temporary relief for silver, but sustained gains are unlikely without renewed geopolitical tensions or a shift in Federal Reserve policy. Traders are closely monitoring U.S.-Iran negotiations and OPEC+ supply decisions for potential catalysts. The 75.00 level now acts as a critical support zone, with a break below it likely to trigger further technical selling.
For Gulf and MENA investors, the silver price decline reflects interconnected global risks, including energy market volatility and regional geopolitical spillovers. Traders should watch for policy shifts in the U.S. and China, as well as any escalation in Middle East tensions. Technical indicators suggest a bearish bias for the near term, but long-term investors may find opportunities if the price stabilizes near key support levels.
