- Silver price rebounds as the US Dollar weakens, but its outlook remains bearish.
- The demand for safe-haven assets diminishes amid truce talks between Israel and Iran.
- The US Dollar struggles to sustain gains following President Trump’s threat to impose 25% tariffs on Canada and Mexico.
Silver (XAG/USD) rebounds after finding temporary support near the psychological level of $30.00, gaining ground as the US Dollar (USD) retreats. However, its outlook has weakened as safe-haven demand declines due to potential de-escalation in the Israel-Iran conflict.
Israeli Ambassador Mike Herzog mentioned on Israeli Army Radio that a ceasefire could be reached within days, easing tensions and reducing the need for safe-haven assets like silver. Despite this, safe-haven demand remains intact due to the ongoing Russia-Ukraine war.
Meanwhile, a decline in the US Dollar contributes to a slight recovery in silver prices. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, gives up gains after a strong opening, falling to around 107.00. The US Dollar had initially risen after President-elect Donald Trump threatened to impose 25% tariffs on Canada and Mexico, along with an additional 10% tariff on China.
Investors are now focusing on the release of the Federal Open Market Committee (FOMC) minutes from the November 7 meeting, set for 19:00 GMT. During the meeting, the Federal Reserve reduced interest rates by 25 basis points to a range of 4.50%-4.75%, with officials expressing confidence that inflation is moving towards the Fed's 2% target.
Silver technical analysis
Technically, silver resumes its downward trend after briefly rising to near the 20-day Exponential Moving Average (EMA) around $31.40. The metal is expected to retreat towards the November 14 low near $29.70, following a breakdown of the horizontal support at $32.50.
Key support is seen at the upward-sloping trendline from the February 29 low of $22.30, which now aligns around $29.50.
The 14-day Relative Strength Index (RSI) remains in the 40.00-60.00 range, suggesting a sideways market.
Silver daily chart
