The ongoing situation in the Middle East continues to weigh on gold and silver prices.

Commodity

Summary:

Escalating conflict in the Middle East, rising inflation expectations, and interest rate hike expectations continue to limit the upside potential for gold and silver.

SELL XAGUSD

EXP

TRADING

56.742

Entry Price

55.200

57.600

56.930 +0.540 +0.96%

0.0

Pips

Flat

55.200

Exit Price

56.742

Entry Price

57.600

Fundamentals

Over the weekend, the conflict between the US and Iran continued to escalate, pushing oil prices up 15% in a week and exacerbating inflation concerns. Although economic data still showed resilience, rising expectations of a Federal Reserve rate hike combined to exert strong downward pressure on gold and silver prices.

In the short term, silver bulls still lack sufficient support. Like gold, its safe-haven attributes have been severely weakened. Before the Federal Reserve clearly signals a shift to "no interest rate hikes," silver is unlikely to see a sustained rise.

Technical aspects

The ongoing situation in the Middle East continues to weigh on gold and silver prices.

Looking at the 1-hour chart, XAGUSD shows a clear downtrend, continuously breaking down along the trend line. The short-term oversold rebound has reached the downtrend line, which overlaps with the previous support and resistance level. The double resistance on the technical side is suppressing the rebound space of silver prices, and the possibility of a renewed decline cannot be ruled out.

The main strategy is to sell on rallies. You can try to sell short when the price rebounds to around 57.0, with a target of around 55.0 and a stop loss above 57.38.

Trading advice

Trading direction: Short

Entry position: 57.0

Target bit: 55.0

Stop-loss level: 57.6

Downside support levels: 55.0/56.0

Upward resistance levels: 57.2/57.8

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