Silver (XAG/USD) fell on Thursday, trading near $72.82 and down almost 3.0% on the day. It briefly dipped below $70 during the European session amid pressure linked to the US–Israel war with Iran.
A stronger US Dollar and higher Oil prices have added to inflation concerns and supported expectations of tighter monetary policy, especially from the Federal Reserve. Higher-for-longer rate expectations have weighed on the non-yielding metal.
Technical Picture And Key Levels
Technically, silver has faced repeated rejection at the 100-day Simple Moving Average (SMA) near $75.63. It remains above the 200-day SMA at $59.06, suggesting the broader uptrend is still in place.
The Relative Strength Index is 43.64, below 50 after nearing oversold levels, pointing to weak momentum. The MACD (12, 26, 9) is above its signal line but still below zero, implying limited upside within a negative momentum setting.
Resistance sits around the 100-day SMA near $75.60, then the 50-day SMA near $82.90 and the February swing high around $96.62. Support is in the $70–$68 zone, then the March low near $61.01, close to the 200-day SMA.
We are seeing renewed pressure on silver, which reminds us of the situation back in 2025 when similar macro headwinds were at play. The ongoing geopolitical tensions in the Middle East continue to support a strong U.S. dollar, which is currently holding firm above a 105.5 DXY. This is keeping silver prices suppressed, with the metal struggling to hold the critical $70 support level this week.
This weakness is compounded by persistent inflation, as the most recent March 2026 CPI report came in hotter than expected at 2.8%. The market is now pushing back expectations for a Federal Reserve rate cut, a narrative that has weighed on non-yielding assets for over a year. This makes holding silver costly compared to interest-bearing instruments, dampening its safe-haven appeal despite the global uncertainty.
Industrial Demand And Trading Focus
However, we must weigh this against the powerful undercurrent of industrial demand, which has grown significantly since last year. Global data for the first quarter of 2026 showed a 22% year-over-year increase in solar panel manufacturing, which is a major consumer of physical silver. This fundamental demand is likely providing a floor under the market, preventing a more severe price collapse seen in previous bearish cycles.
From a trading perspective, the old support zone around $70-$68 mentioned last year is now a key area of contention. With the price hovering just below this, the risk of a further slide toward the March 2026 low near $65 is very real. Derivative traders could consider strategies that capitalize on this tension, such as buying put spreads to target a move toward the long-term moving average, which now sits near $62.
