Silver (XAG/USD) pulled lower from Monday’s peak and is testing levels below $61.00 at the time of writing, paring some of last week’s gains.
A more cautious stance towards the US-Iran peace deal has offset the positive impact of fading hopes of further Federal Reserve rate hikes, posing moderate pressure on precious metals on Tuesday
Some verbal escalation between the US and Iran has clouded hopes of a swift end to the conflict and soured market sentiment this week. On Tuesday, Iran’s Foreign Minister Abbas Araghchi warned that negotiations on a final deal will not begin if threats continue following comments from US President Donald Trump, who affirmed that the US will reach an agreement or “finish the job” in Iran. Meanwhile, reports of an attack on an Oil tanker on the Strait of Hormuz have heightened concerns, pushing investors’ enthusiasm about the lessening chances of immediate Federal Reserve (Fed) rate hikes to the background.
Technical Indicators: XAG/USD is turning bearish again XAG/USD trades at $61.16, with momentum indicators entering bearish territory again, following Monday’s rejection at the $63.30 area. The Relative Strength Index (14) on the four-hour chart is flirting with the 50 midline, while the Moving Average Convergence Divergence (MACD) dipped below zero and points to waning bullish pressure. A clear break below the $60.40 session low would expose the 2026 lows between $55.70 and $56.70, which held bears last week.