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Silver prices (XAG/USD) edged higher on Monday, rising nearly 1% amid a retreat in U.S. Treasury yields as traders re-evaluate the Federal Reserve's policy trajectory. The metal is currently trading near $70.50, still below its 100-day simple moving average (SMA), a key technical level that has acted as resistance. The 100-day SMA remains a critical benchmark for trend confirmation, with sustained weakness below this level signaling bearish momentum for the near term.
The move reflects broader market uncertainty about the Fed's rate decisions, as lower Treasury yields reduce the opportunity cost of holding non-yielding assets like silver. This dynamic supports short-term gains but does not resolve underlying structural challenges for the commodity. Traders should monitor the 100-day SMA as a potential support/resistance zone, with a break below $70.50 likely to trigger further declines.
For investors in the Gulf and MENA region, the technical weakness in silver highlights the importance of risk management in volatile markets. Key watchpoints include the Fed's next policy statement and global industrial demand trends, which could shift the balance between bullish and bearish forces. A sustained rebound above the 100-day SMA would be required to re-ignite long-term bullish sentiment.
