Silver Price Dips to $79.50–$79.80 as Renewed US-Iran Tensions and Oil Spike Pressure Precious Metals

Quick overview

Silver (XAG/USD) is currently trading around $79.50 – $79.80 per ounce a fair bit lower than Fridays close in the $80.80-$82 bracket. Its had a pull back from last weeks gains after a brief rally gave investors a bit of breathing room.

The Main Players Today

• Ratcheting up the Tensions with Iran: We were all optimistic last week after Iran said the Strait of Hormuz was back open to shipping, but that optimism was short lived when reports started emerging of the strait being closed again, incidents at sea, US naval movements and accusations of breaches of the ceasefire. And it all started to send oil prices upwards as the fears of supply disruption started to creep back in. The problem is oil prices ended up putting a bit of a squeeze on the dollar, and that, combined with a stronger dollar is making life a bit harder for silver – even though its traditionally a safe haven and an industrial metal.
• The State of Sentiment in the Markets: The fragile ceasefire is still hanging in the balance (its set to expire around April 22) and this is keeping everyone on edge. As an investment, silver has got a bit of everything going for it – it’s a hedge against inflation, or an investment in a solar panel, an EV or an electronic – so it’s pretty sensitive to how the markets are feeling, and to energy prices.

Where We Are Now

Silver still has the dent in its balance sheet that’s been there for a while. It faces a projected deficit of 46 million ounces in 2026, and its got tight inventories on the COMEX. All this is actually starting to create a bit of a bullish picture for the long term. And the gains in the past week or so have been helped a bit by the Hormuz situation, but any move we see in the near term is still going to be driven by headlines.

What Silver (XAG/USD) Technicals Are Saying

Silver is currently trading at $78.99 and its hitting an area of support around $78.00 – $78.10 for the umpteenth time. This level is also where the 50-period moving average is, at $78.09. Its actually got a pretty solid base down there, just above the 200-period moving average at $77.50.

Price is still holding in an ascending channel – its been forming higher lows along the rising trendline for a while now. The last few candles have been a bit of a mixed bag – some small bodies on the chart with wicks on both sides – but they do show sign of consolidation after the last push up to $83.00 resistance. Buyers have been defending the $78 level, but its still pretty apparent that they’re getting a bit hesitant.

Key Levels To Watch

• Resistance: $80.60 → $83.00
• Support: $78 → $77.90 → $75.18

Trade Idea: Buy above $80.60 then target $83.00 and use a stop below $77.90.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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