- Silver extends its reversal from Monday’s highs above $81.00 to levels below $72.00.
- Precious metals remain on the defensive with Trump’s deadline on Iran looming.
- XAG/USD shows a moderate bearish pressure halfway through the last two weeks’ trading range.
Silver (XAG/USD) is showing a mild bearish momentum on Tuesday’s European trading session, with the reversal from Monday’s high, at 81.13, extending to levels below $72.00, amid vanishing hopes of a peace deal in Iran. The US Dollar remains steady as the ultimatum on Iran to reopen the Strait of Hormuz expires in a few hours.
The US and Iran rejected the peace plan submitted by Pakistan on Monday, while Iran’s alternative proposal was considered “significant” but not enough by US President Donald Trump. The deadline for Iran to reopen the critical waterway expires on Tuesday at 8 PM, and Trump has threatened to “demolish” the country in one night unless a last-minute breakthrough is reached.
Technical Analysis
XAG/USD shows a mildly bearish near-term bias after failing to sustain recent highs. The 4-hour Relative Strength Index (RSI) has pulled back below the 50 line, suggesting fading upside pressure. The Moving Average Convergence Divergence (MACD) indicator holds in negative territory with a slightly negative histogram, reinforcing waning bullish momentum.
On the downside, Monday’s low, at the $68.30 area, might provide support ahead of the March 26 low, near $66.70. Further down, the 2026 low, at the $61.400 area, will come into the bears’ focus
To the upside, the 38.6% Fionacci retracement of the late March sell-off, at the $75.00 area, keeps holding bulls. Further up, the pair might find sellers at the area between the March 17 high, at the $82.55 area, and the 61.8% Fibonacci retracement of the aforementioned cycle, at $83.35.
