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Silver (XAG/USD) surged over 4% on Thursday following a rebound from a daily low of $61.51, the lowest since March 23, after U.S. President Donald Trump announced the cancellation of planned attacks against Iran. The price rebound was triggered by geopolitical tensions easing, as Trump stated that final points of an agreement had been approved. Despite the short-term rally, technical indicators suggest a bearish outlook for the metal, with key support levels now at risk. Traders are closely monitoring whether this bounce will hold or if further declines are imminent.
The move highlights the sensitivity of precious metals to geopolitical events, with silver often acting as a proxy for risk appetite. A weaker dollar and potential easing of U.S.-Iran tensions could provide temporary relief, but structural factors like weak industrial demand and limited central bank buying remain bearish for the long term. Market participants should watch for follow-through volume and whether the price can break above critical resistance at $65.50 to confirm a reversal.
For Gulf investors, the volatility in silver prices underscores the importance of hedging against geopolitical risks. The broader commodity market may see mixed signals depending on how quickly the U.S.-Iran situation stabilizes. Key technical levels to monitor include the 200-day moving average at $63.20 and the 50-day line at $64.80. A sustained break below $60 would likely accelerate the bearish trend.
