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Silver prices (XAG/USD) declined for the third consecutive day, trading near $64.70 per troy ounce amid renewed concerns about inflation and high interest rates, compounded by rising oil supply uncertainties. The retreat in U.S.-Iran peace optimism has weakened demand for silver as a safe-haven asset, while the U.S. dollar's strength against major currencies further pressured the metal. Analysts note that the breakdown below critical support levels could trigger deeper losses, with technical indicators showing bearish momentum.
For markets, the sustained decline in silver highlights broader macroeconomic risks, including the Federal Reserve's potential rate hikes and geopolitical tensions in energy-producing regions. Traders are closely monitoring the U.S. Non-Farm Payrolls report and OPEC+ supply decisions, which could influence both silver and gold prices. The correlation between silver and equities also suggests equity markets may face renewed volatility if the trend continues.
Looking ahead, investors should watch the $64.00 psychological level as a key support zone. A break below this could target $62.50, while a rebound above $66.00 might signal a short-term reversal. For Gulf investors, the interplay between oil prices and silver remains critical, given the region's energy-driven economy and silver's industrial demand in manufacturing.
