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.<\/p>\n
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\u2019s objectives are met.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver dips to $93.75 as dollar strengthens; traders watch Iran tensions, PPI; uptrend holds above key support.<\/p>\n","protected":false},"author":103,"featured_media":16983,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-50496","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\/50496","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=50496"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/50496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16983"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=50496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=50496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=50496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}