Silver Price Forecast: XAG/USD struggles to regain momentum below 50-day SMA

💡 DMK Insight

Silver’s recent pullback signals a critical moment for traders: As XAG/USD retreats from intraday highs, the rebound of the US Dollar is a key factor to watch. The ongoing geopolitical tensions between the US and Iran are creating volatility, which can impact safe-haven assets like silver. Traders should be aware that a stronger dollar typically pressures commodities priced in USD, including silver. If the dollar continues to strengthen, we could see XAG/USD test lower support levels. On the flip side, if negotiations between the US and Iran show signs of progress, silver could regain momentum, especially if market sentiment shifts towards risk-off. Keep an eye on the $1,850 support level for silver; a break below could trigger further selling. Conversely, any positive news could push prices back towards recent highs. Given these dynamics, monitoring the dollar index and geopolitical developments will be crucial for positioning in silver and related assets.