Silver (XAG\/USD) traded in a tight range on Monday as Middle East tensions continued, while traders avoided strong bets amid mixed reports on efforts to end the US-Iran war. It was near $73, with a softer US Dollar limiting losses. <\/p>\n
Gains were limited as higher Oil prices raised inflation worries and supported expectations of higher US interest rates for longer. Markets weighed shifting headlines on diplomacy. <\/p>\n
Axios reported talks involving the US and Iran, with regional mediators, about a possible 45-day ceasefire. IRNA later said Iran rejected a ceasefire proposal sent via Pakistan and issued a 10-point response. <\/p>\n
The proposal was reported to include demands to end conflicts in the region and set terms for safe passage through the Strait of Hormuz. Focus has moved to a deadline set for Tuesday at 8:00 p.m. Eastern Time, with warnings of strikes if the strait is not reopened. <\/p>\n
Technically, price has been rejected near the 100-day SMA and remains below the 50-day SMA. Resistance sits at $75.84, then $82.35, and the February swing high at $96.62. <\/p>\n
Support is seen at $70-$68, then $61.01, near the 200-day SMA at $59.24. RSI is 43, while MACD is slightly positive but near zero. <\/p>\n
We are seeing silver trade sideways around $38 an ounce as traders assess the current geopolitical climate. Market hesitation stems from escalating maritime tensions in the South China Sea, creating a sense of indecision. This feels very similar to what we experienced this time last year.<\/p>\n
Looking back at this period in 2025, we recall a similar tight range when silver was pinned near $73. The market was whipsawed by conflicting headlines over the US-Iran war and a potential ceasefire. That experience taught us how quickly sentiment can turn on a single news report.<\/p>\n
Given the uncertainty, we believe establishing long straddles or strangles on silver futures is a prudent approach for the coming weeks. This strategy profits from a significant price move in either direction, which seems likely given the fragile situation. The Precious Metals Volatility Index (PMVIX) supports this view, having climbed 15% to 32.5 in the last two weeks.<\/p>\n
For those with a slight bullish bias, a call ratio spread could offer a low-cost way to position for an upside break. We have seen call option open interest on the May silver contracts with a $40 strike jump by 25% this past week, indicating an upside hedge. This allows traders to capitalize on a sudden de-escalation or a flight-to-safety rally.<\/p>\n
We must not ignore the downside risk, as the stalemate could easily break the other way. The memory of silver testing the $61 level during the 2025 crisis serves as a sharp reminder of how quickly support can vanish. Buying protective puts or using bear put spreads to hedge long positions seems wise, especially as the latest CPI data makes a supportive Fed pivot unlikely.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver holds near $73 amid US-Iran tension, mixed ceasefire reports, and technical resistance; dollar softness limits losses.<\/p>\n","protected":false},"author":103,"featured_media":16982,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-46716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/46716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=46716"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/46716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16982"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=46716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=46716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=46716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}