{"id":37938,"date":"2025-12-31T00:57:41","date_gmt":"2025-12-30T16:57:41","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/amid-geopolitical-tensions-xag-usd-rebounds-to-75-00-after-a-7-decline-in-thin-liquidity\/"},"modified":"2025-12-31T00:57:41","modified_gmt":"2025-12-30T16:57:41","slug":"amid-geopolitical-tensions-xag-usd-rebounds-to-75-00-after-a-7-decline-in-thin-liquidity","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/amid-geopolitical-tensions-xag-usd-rebounds-to-75-00-after-a-7-decline-in-thin-liquidity\/","title":{"rendered":"Amid geopolitical tensions, XAG\/USD rebounds to $75.00 after a 7% decline in thin liquidity"},"content":{"rendered":"<p>Silver has recently climbed to the $75.00 area after rebounding from lows of $70.40. The thin year-end liquidity contributes to notable fluctuations in precious metals. Resistance is expected above the $75.00 mark.<\/p>\n<p>The silver market witnessed a 7% dip on Monday due to thin liquidity conditions but is recovering. Global geopolitical tensions and expectations for further US monetary easing in 2026 are currently supporting precious metals.<\/p>\n<p>Russia revisited its peace talks stance with Ukraine following a drone incident at President Putin\u2019s residence. Military activities around Taiwan continue, and there are threats from former US President Trump towards Iran. <\/p>\n<p>The Federal Reserve&#8217;s latest meeting minutes are anticipated to reflect differing views, raising hopes for potential interest rate cuts exceeding the forecasted 25 basis points.<\/p>\n<p>On a 4-hour chart, Silver is at $75.65, supported by a 50-period SMA around $70.89. Oscillators show mixed signals with the MACD line below the Signal line, but the RSI has moved into bullish territory. <\/p>\n<p>A bearish pattern might signal a deeper correction, with resistances at $76.50 and $80.00, while support could be found at the $70.53 level and December&#8217;s low of $64.75.<\/p>\n<p>Silver is less popular than Gold but is used as a store of value, a medium of exchange, and a hedge during inflation. Factors such as geopolitical events, Federal Reserve actions, and industrial demand affect its price. Silver&#8217;s industrial use, especially in electronics and solar energy, can also drive price changes. Silver&#8217;s price movement aligns with Gold, influenced by the Gold\/Silver ratio.<\/p>\n<p>We&#8217;re seeing sharp moves in silver, which has climbed back to the $75.00 area after a quick dip near $70.40. This volatility is typical for the last week of the year due to thin trading volumes. Traders should be prepared for exaggerated price swings on any news.<\/p>\n<p>The escalating global tensions are providing a strong floor for precious metals. We see continued friction in Eastern Europe and military posturing in the South China Sea, which pushes traders toward safe-haven assets like silver. This environment makes shorting silver risky, as any new headline could trigger another sharp rally.<\/p>\n<p>Adding to the bullish sentiment is the expectation of a dovish Federal Reserve heading into 2026. With core inflation having fallen to 2.5% in the third quarter of 2025, the market is pricing in at least two rate cuts in the first half of the new year. A weaker dollar and lower borrowing costs make holding a non-yielding asset like silver much more attractive.<\/p>\n<p>From a technical standpoint, the picture is uncertain, with indicators giving conflicting signals and a bearish daily chart pattern looming. Given the high volatility, derivative traders might consider strategies that define risk, like buying call spreads to target the $80 psychological level. This approach allows us to participate in the upside potential while limiting our maximum loss if prices reverse sharply.<\/p>\n<p>We should not ignore the strong underlying industrial demand, which provides a long-term tailwind. After record consumption in the solar and EV sectors through 2023 and 2024, projections for 2026 show this trend continuing as global green energy initiatives accelerate. This fundamental support could cushion any potential dips and provides a solid reason to hold a long-term bullish view.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Silver rebounds to $75.65 amid geopolitical tensions and Fed rate cut hopes; resistance seen near $76.50.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37938","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/37938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=37938"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/37938\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=37938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=37938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=37938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}