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Silver prices (XAG/USD) fell to $74.70 per troy ounce during Asian trading hours on Wednesday, slipping below the $75 level after a brief rebound. The decline followed renewed hostilities in the Middle East, which heightened geopolitical risks and pressured non-yielding commodities like silver. Analysts attribute the move to reduced demand for industrial metals amid uncertainty, as investors shifted toward safer assets such as gold and U.S. Treasuries.
The drop in silver prices reflects broader market concerns about global economic stability. Geopolitical tensions often drive demand for safe-haven assets, but silver’s dual role as both an industrial and investment commodity makes it vulnerable to shifts in risk appetite. Traders are now monitoring developments in the Middle East and potential central bank interventions for clues about the metal’s near-term direction.
For Gulf investors, the decline underscores the need to balance portfolios with defensive assets during volatile periods. The silver market’s sensitivity to geopolitical events means further fluctuations are likely if hostilities escalate. Key levels to watch include $74.50 (support) and $75.50 (resistance), with technical indicators suggesting a bearish bias in the short term.
