Silver (XAG\/USD) rose on Wednesday after reports of progress towards a possible US-Iran peace deal. XAG\/USD was trading around 77, up over 5.50% on the day.<\/p>\n
Axios said Washington and Tehran are moving closer to an agreement to end the war and set a framework for detailed nuclear talks. The news was followed by falls in the US Dollar and crude oil prices.<\/p>\n
Lower oil prices eased short-term inflation fears and pushed US Treasury yields down, supporting the non-yielding metal. Markets also moved back towards pricing in Federal Reserve rate cuts by year-end.<\/p>\n
Uncertainty remains over whether both sides will reach a final deal, which may limit further gains. The move also raised the chance of a consolidation phase after the intraday jump.<\/p>\n
On the daily chart, silver stayed below the 50-day and 100-day Simple Moving Averages (SMAs). The Relative Strength Index was near 53, the MACD was fractionally positive, and the Average Directional Index was around 12.<\/p>\n
Resistance sits at the 50-day SMA near $77 and the 100-day SMA near $80. Support is in the $70.00\u2013$71.00 zone, with the 200-day SMA at $63.<\/p>\n
The sudden price spike to the $77 resistance level, driven by geopolitical headlines, suggests we should approach this with caution. Given the uncertainty of a final US-Iran agreement, we see this as an opportunity to trade volatility rather than take a strong directional stance. Implied volatility on silver options has surged to a six-month high, reaching over 35% for front-month contracts, making option-selling strategies more attractive.<\/p>\n
For those anticipating further upside if a deal is signed, buying a call spread is a defined-risk way to participate. A June $77\/$80 call spread, for instance, would capture a move to the next key resistance level while limiting the premium paid during this period of high volatility. We must remember how a similar rally built on diplomatic hopes in late 2025 quickly reversed when those talks faltered.<\/p>\n
The weak underlying trend indicators suggest this rally lacks technical conviction, opening the door for a consolidation phase. Selling an iron condor with strikes around the $70 support and $80 resistance levels would be a prudent way to collect premium, betting that the price remains range-bound as the market awaits concrete news. This strategy directly plays into the technical picture of a market that has moved too far, too fast on a single headline.<\/p>\n
While the market is now pricing in a higher probability of a Fed rate cut, with the CME FedWatch Tool showing a 65% chance by September, we note that underlying inflation remains a concern. The most recent April Core CPI report came in at a stubborn 3.1%, which may limit the Fed\u2019s ability to ease policy as quickly as traders now expect. This economic reality could cap any further significant, non-yielding asset rallies until a cut is more certain.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver jumps 5.5% near $77 as US-Iran deal hopes weaken dollar, oil, yields; upside capped.<\/p>\n","protected":false},"author":103,"featured_media":16973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-49660","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\/49660","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=49660"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/49660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16973"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=49660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=49660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=49660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}