XAG/USD Falls as Trump Revives Iran Conflict Fears

Traders' Opinions

Summary:

Silver fell for a second straight session as renewed US-Iran tensions strengthened the US Dollar and Treasury yields, reducing demand for the non-yielding precious metal. Investors are now awaiting the Federal Reserve's June meeting minutes for fresh clues on the interest rate outlook.

SELL XAGUSD

EXP

TRADING

58.930

Entry Price

50.000

66.000

60.370 +2.092 +3.59%

0.0

Pips

Flat

50.000

Exit Price

58.930

Entry Price

66.000

Silver prices remained under pressure, with XAG/USD slipping toward $58.45, as renewed geopolitical tensions in the Middle East fueled demand for the US Dollar and pushed Treasury yields higher, reducing the appeal of the non-yielding precious metal.

Market sentiment deteriorated after US President Donald Trump declared that the memorandum of understanding aimed at ending hostilities with Iran was effectively "over," adding that Washington no longer needed a negotiated settlement. Trump also warned that fresh military strikes against Iran could come as early as Wednesday night, raising the prospect of attacks on critical infrastructure, including power facilities, water treatment plants and Kharg Island, Iran's primary crude oil export terminal.

The renewed escalation has shifted investor focus back toward inflation risks rather than traditional safe-haven buying. Any disruption to energy supplies through the Strait of Hormuz could send oil prices higher, increasing inflationary pressures and reinforcing expectations that the Federal Reserve will keep monetary policy restrictive for longer.

Higher Treasury yields and a firmer US Dollar have therefore outweighed Silver's safe-haven appeal, leaving the metal vulnerable to further downside despite growing geopolitical uncertainty.

Technical Analysis

silver has shifted back into a bearish structure on the 4-hour chart, with price trading near $58.93 after failing to hold above the short-term rising trendline. The broader trend remains negative, as XAG/USD continues to trade well below the major $63.00–$64.00 resistance zone and has been forming lower highs since the rejection from the $72.00 area.

The latest breakdown is technically important because the recovery from the $56.00 support region now looks corrective rather than bullish. Price has rejected near $62.50–$63.50, then slipped back below $60.00, showing that sellers are defending the upside.

On the downside, immediate support sits around $56.00. A sustained break below this level would confirm renewed bearish continuation and expose $50.00, which aligns with the projected move on the chart.

On the upside, silver would need to reclaim $60.00–$61.00 to ease immediate pressure. A stronger break above $64.00 would be required to invalidate the bearish structure.

Momentum remains weak, with price rejecting resistance and struggling to build follow-through above $60.00.

TRADE RECOMMENDATION

SELL SILVER

ENTRY PRICE: 58.93

STOP LOSS: 66.00

TAKE PROFIT 1: 56.00

TAKE PROFIT 2: 50.00

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