Silver (XAG/USD) resumes its broader downside trend on Tuesday after Monday’s firm recovery move, as Iran denies involvement in talks with the United States (US) regarding the resolution of the war in the Middle East. During the press time, XAG/USD is down 3.2% to near $66.90.
Iranian officials downplayed the prospect of negotiations with the US after Parliament Speaker Mohammad Bagher Ghalibaf said no talks have been held with it. Also, Iran’s Foreign Ministry reiterated that its stance on the Strait of Hormuz and conditions to end the war remain unchanged, adding that Tehran has not responded to messages relayed by other countries regarding US requests for talks, according to IRNA.
Before Iran’s clarification on news claiming its involvement in negotiations with the US, President Donald Trump announced through a post on Truth.Social that he has instructed the Department of War to pause scheduled military strikes on Iran’ss power plants for five days, as Washington had very good and productive conversations with Tehran regarding a complete and total resolution of our hostilities in the Middle East.
Theoretically, signs of geopolitical tensions remaining heightened tend to increase the safe-haven appeal of precious metals, such as the Silver. However, precious metals are underperforming as surging energy prices due to Middle East conflicts have weakened speculation that major global central banks will cut interest rates this year. A hawkish stance or an extended pause on interest rates by global central banks bode poorly for non-yielding assets, such as Silver.
Meanwhile, a sharp recovery move in the US Dollar (USD) due to revived fears of persistent conflicts in the Middle East has also weighed on the Silver price. Technically, a higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.25% higher to near 99.40 after recovering from the weekly low of 98.88 posted on Monday.
Silver technical analysis
XAG/USD trades lower at around $66.40 during the press time. The near-term bias is bearish as spot holds well below the 20-day Exponential Moving Average (EMA), which now tracks near $78.40 and caps recovery attempts. Price has broken a sequence of higher daily closes and is extending away from the 20-day EMA, reinforcing downside pressure.
The 14-day Relative Strength Index (RSI) at 32.63 sits near oversold territory and confirms persistent selling momentum rather than exhaustion.
Initial resistance emerges at the 20-day EMA around $78.40, and a daily close above this level would be needed to ease immediate downside pressure. Above there, the $83.00 region, tied to recent consolidation before the latest breakdown, marks a secondary barrier. On the downside, major support sits near Monday’s low at $61.01, with a break exposing the next bearish target toward the October 16 high of $54.86.
