FUNDAMENTAL OVERVIEW Silver has come under renewed pressure on Tuesday after the markets got a bit scared following Iran’s refusal to participate in the Islamabad talks due to the US blockade in the Strait of Hormuz.
FUNDAMENTAL OVERVIEW Silver has come under renewed pressure on Tuesday after the markets got a bit scared following Iran’s refusal to participate in the Islamabad talks due to the US blockade in the Strait of Hormuz. Most of the losses were then pared after Trump extended the ceasefire to allow more time for Iran to put forward a proposal to end the war but didn’t lift the blockade.
There’s no deadline for this latest extension, so we might just get stuck in this new situation until the bombs start dropping again or they finally reach a deal. For now, the short-term bias is neutral to bearish as we head into the weekend without clear signs of improved relations and the global rate hike expectations keep capping the upside. The downside should remain limited amid positive expectations due to the indefinite ceasefire.
Looking ahead, a resolution should trigger a rally towards the 96.00 level, while a return to fighting will likely send prices into new lows. SILVER TECHNICAL ANALYSIS – DAILY TIMEFRAME On the daily chart, we can see that silver fell below the key 78.00 level and opened the door for new lows. The sellers piled in on the break lower targeting the major upward trendline around the 67.00 handle.