Key Moments

Geopolitical Signals and Policy Expectations

Silver futures began the week with a gap-up opening, highlighting the market’s current sensitivity to shifts in sentiment. Throughout the year, futures prices have reacted to remarks from U.S. President Donald Trump, although price behavior has been driven primarily by financial and macroeconomic factors.

On Sunday, US President Donald Trump told advisers that an initial, more limited strike could be used to pressure Iran into agreeing to abandon its nuclear weapons capability.

Potential targets under consideration include facilities linked to Iran’s Islamic Revolutionary Guard Corps, nuclear infrastructure, and elements of its ballistic missile program.

At the same time, last week’s economic data pointed toward reduced expectations for additional interest-rate cuts this year. That backdrop, combined with the latest positioning figures, is shaping a cautious tone in the silver market.

Speculative Positioning Signals Exhaustion

On Saturday, the release of CFTC Silver net speculative positions suggested that the current phase of positioning exhaustion may continue into this week. The reported level of 24.0K marks the lowest reading since the start of the year.

This drop indicates a pronounced reduction in overleveraged speculative exposure. Such a contraction in positioning could heighten the risk of a sharp, sudden sell-off if market sentiment turns.

Monthly Chart: Wide Swings and Unclear Direction

On the monthly timeframe, silver futures opened the month at $84.300, moved up to a high of $92.015, and dropped to a low of $63.900, before trading at $86.860. This broad trading range reflects heightened uncertainty amid shifting expectations for Federal Reserve rate cuts this year.

The current monthly candle introduces questions about the durability of the rebound from this month’s lows. The analysis notes that January saw the formation of a large exhaustive hammer after silver futures tested the record peak at $121.903, and the latest price action casts doubt on whether that reversal will hold.

Weekly Chart: Resistance Caps Upside

On the weekly chart, silver futures opened this week with a gap higher at $84.977 and subsequently reached a weekly high of $87.187. Prices are currently below immediate resistance at $88.076, with the next notable resistance level identified at $92.016.

The analysis suggests that failure to break and hold above the immediate resistance could lead to renewed downside pressure. In such a scenario, the first important support is located at the 9-day exponential moving average (EMA) at $80.054. A decisive break below that level could expose the next support at the 20-day EMA at $70.524.

Daily Chart: Narrow Range Highlights Uncertainty

On the daily chart, silver futures also started with a gap-up move but have since been confined to a tight trading band. This compressed range points to a rise in indecision among market participants.

The key daily resistance is identified at $80.076. According to the analysis, any attempt by prices to sustain above this level could draw in aggressive selling pressure from larger bearish market participants.

Risk Notice

Disclaimer: Readers are advised to take any position in silver at their own risk, as this analysis is based only on observations.