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Silver prices (XAG/USD) declined by 2.12% on Wednesday, trading near $85.30, pressured by a rebound in the US Dollar and rising US Treasury yields. The precious metal faces challenges in sustaining recent gains as investors shift toward higher-yielding assets amid improved risk appetite. Geopolitical tensions and economic uncertainties remain key factors influencing market sentiment. The weakening demand for non-yielding assets like silver highlights the inverse relationship between the US Dollar and commodities. A stronger USD makes dollar-denominated metals less attractive to foreign buyers, exacerbating downward pressure on prices. Traders are closely monitoring Federal Reserve policy signals and inflation data for potential shifts in market direction. For MENA investors, the interplay between global macroeconomic factors and regional geopolitical risks could amplify silver's volatility. Key watchpoints include central bank gold purchases, industrial demand from emerging markets, and the USD's trajectory against the euro and yen. Technical indicators suggest critical support levels near $84.50 and resistance at $87.00.
