The usdt full formprecious metals market witnessed surprising price action as silver (XAG/USD) extended its downward correction for the third consecutive session. During Thursday's European trading hours, the white metal declined approximately 1.5% to approach the $35.50 level, marking a notable pullback from Monday's multi-year peak at $36.90.
Market observers noted the unusual divergence between escalating Middle East tensions and silver's price movement. Multiple reports indicated heightened military preparations between Israel and Iran, typically a scenario that would boost demand for traditional safe-haven assets. However, the metal's failure to capitalize on these developments suggests other market forces may be at play.
Concurrently, uncertainty surrounding upcoming US trade policy decisions appears to be influencing market sentiment. Recent statements from Washington regarding impending tariff determinations have created volatility across multiple asset classes. These developments have kept the US Dollar under pressure, though this dollar weakness hasn't translated into expected gains for silver prices.
From a chart analysis standpoint, silver's recent price action shows interesting technical characteristics. The metal's retreat from decade-high levels has brought it back toward crucial support zones, with traders closely monitoring key moving averages and momentum indicators.
The $34.60-$34.90 range emerges as critical support, representing both the 20-day exponential moving average and previous resistance-turned-support from October's price action. On the upside, psychological resistance at $40.00 remains the next major hurdle for bullish traders.
The 14-day Relative Strength Index (RSI) has retreated from overbought territory to more neutral levels around 60, potentially setting the stage for renewed upward momentum if current support levels hold. Market technicians suggest this consolidation phase may represent healthy price action following the metal's strong rally earlier in the month.
As trading sessions progress, market participants will be watching for either confirmation of the current correction or signs of renewed buying interest at these lower price levels. The interplay between geopolitical developments and technical factors continues to create dynamic trading conditions in the precious metals space.
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