Silver (XAG/USD) slipped to about $93.75 in early European trading on Monday, with the US Dollar gaining support. Traders are watching the US-Iran conflict, and hotter-than-expected US Producer Price Index (PPI) inflation weighed on the dollar-priced metal.
There may be a cap on further falls if Middle East tensions lift demand for safe-haven assets. US President Donald Trump said on Monday that combat operations will continue in Iran until America’s objectives are met.
Technical Picture And Key Levels
On the daily chart, silver remains above the 100-day exponential moving average near $72.0, keeping the wider uptrend in place. Prices are in the upper half of the Bollinger bands, with the middle band near $82.0 acting as support.
The Relative Strength Index is around 59 and has turned higher. Resistance is near $97.00, and a break could bring $100.00 into view.
Support sits around $82.00, with a lower level near the rising 100-day EMA at about $72.00. The article was corrected on March 2 at 06:55 GMT to clarify that Middle East tensions could limit downside, not lift upside.
Given the conflicting signals, we see implied volatility as the primary opportunity in the coming weeks. The tension between safe-haven demand from the US-Iran conflict and a strengthening US Dollar, which we saw push the DXY index up 0.5% last week, creates an environment ripe for a sharp price move. Traders who are directionally uncertain could consider long strangles, using out-of-the-money puts and calls to bet on a significant breakout from the current range.
Options Strategies For The Current Setup
For those of us leaning bullish, the sustained uptrend above the 100-day EMA is a strong technical signal. We’ve seen ETF holdings for silver increase by 1.2 million ounces in February 2026, suggesting institutional interest remains firm despite the high price. Purchasing call options with a strike near the $97.00 resistance offers a low-cost way to capture a potential rally toward the psychological $100.00 mark.
However, we must respect the downside risk posed by hot inflation data and a potentially hawkish Federal Reserve. We remember how quickly precious metals corrected in late 2025 when the market priced in higher-for-longer interest rates. Buying puts with a strike below the $82.00 support level can serve as a prudent hedge for existing long positions or as an outright bearish bet should geopolitical tensions ease unexpectedly.
If the price remains caught between these opposing forces, selling premium could be the most effective strategy. Given the defined technical levels, constructing an iron condor by selling a bear call spread above $97.00 and a bull put spread below $82.00 allows us to profit from consolidation. This approach benefits from time decay as long as silver chops between these key support and resistance zones.
