XAG/USD rises above $73 as Trump shows readiness for peace with Iran
- Silver price attracts significant bids as US President Trump calls for peace with Iran despite the Hormuz remaining closed.
- Trump said a forceful reopening of Hormuz would mean extending the military mission.
- Traders might pare hawkish central banks’ bets if Middle East conflicts get resolved.
Silver price (XAG/USD) jumps 3% to near $73.00 in the Asian trading session on Tuesday. The white metal strengthens after a report from the Wall Street Journal (WSJ) showed that United States (US) President Donald Trump is ready for peace with Iran even without the reopening of the Strait of Hormuz, the gateway of 20% of global energy supply.
The WSJ reported that US President Trump told aides he is willing to end the US military campaign against Iran even if the Strait of Hormuz remains largely closed. The report also stated that administration officials assessed that forcing the waterway back open would mean extending the military mission beyond their timeline of four to six weeks.
Theoretically, signs of easing geopolitical tensions ease demand for safe-haven assets, such as Silver; however, the white metal is outperforming as hopes of a decline in the Oil price due to the Middle East truce would ease accelerated global inflation expectations.
The precious metal underperformed in the last few weeks as rallying energy prices due to Middle East conflicts-led supply disruption had de-anchored inflation projections on the upside, a scenario that discourages central banks from loosening monetary conditions and diminishes the demand for non-yielding assets, such as Silver.
Silver technical analysis
XAG/USD rises to near $73 in the Asian trade on Tuesday. However, the near-term bias remains mildly bearish as price is still below the 20-day Exponential Moving Average (EMA), which now caps at $75.49 and tracks a maturing downswing from the mid-$80s. The sequence of lower daily highs confirms selling pressure, while 14-day Relative Strength Index (RSI) recovers slightly above 40.00, indicating a bearish momentum pause with the downside bias remaining intact.
Initial resistance emerges at the 20-day EMA near $75.50, and a daily close above this level would be needed to ease immediate downside pressure and expose the mid-$80s region as a secondary barrier. On the downside, minor support sits near the March 26 low at $66.70, with a break lower opening the way toward the March 23 low around $61.00 as the next bearish objective.
