Silver Around $89 as Dollar Weakness and Talks Drive

Key Moments

Geopolitical Focus: US-Iran Nuclear Talks in Geneva

Silver prices remain near $89.00 during Thursday’s European session as traders await US-Iran nuclear talks in Geneva. The discussions will reveal whether tensions in the Middle East might ease or escalate.

The United States seeks to persuade Tehran to abandon its nuclear infrastructure plans. Meanwhile, US President Donald Trump warned that military action could follow if Iran refuses to reach a deal.

On Monday, Trump posted on Truth.Social that it would be a “very bad day” for Iran and its people if no agreement is reached. Consequently, traders are watching silver as a potential safe-haven amid heightened geopolitical risk.

Dollar Pressure From US Trade Policy Concerns

The US Dollar softens amid uncertainty over trade policy, creating a supportive backdrop for silver. Investors worry some countries might renegotiate trade deals following the Supreme Court ruling against Trump’s tariff policies.

Currently, the US Dollar Index (DXY), which tracks the Greenback against six major currencies, trades near 97.50. A weaker Dollar makes silver cheaper in other currencies, often boosting demand.

On Wednesday, US Trade Representative Jamieson Greer suggested Washington could raise tariffs on some countries to 15% or higher from the recently set 10%. He did not specify which partners might face higher duties. The 10% global tariffs were announced by Trump shortly after the Supreme Court ruling.

Technical Picture: XAG/USD Above 20-Day EMA

XAG/USD trades steadily around $89.00, showing a mildly bullish bias. The price holds above the 20-day Exponential Moving Average (EMA), which has turned higher. This supports the rebound from mid-month lows. Recent closes from $73–$74 suggest a corrective rise within a broader pullback from $116.

The 14-day Relative Strength Index (RSI) ranges between 40 and 60, reflecting sideways momentum.

A daily close above $94.00 would strengthen the bullish case and pave the way to test $102–$108. Conversely, a break below $84.50 would weaken the current bias and limit upside potential.

(Technical analysis in this story was generated with AI assistance.)

Silver as an Investment Asset

Silver is a widely traded precious metal. Investors use it as a store of value and as a medium of exchange. While less prominent than gold, silver helps diversify portfolios, hedge inflation, or tap its intrinsic value. Investors can gain exposure through coins, bars, or ETFs tracking international silver prices.

Key Drivers of Silver Prices

Silver reacts to multiple factors. Geopolitical tension or economic slowdown can boost silver due to its safe-haven role, although less than gold. As a non-yielding asset, it benefits when interest rates decline.

Silver is priced in US Dollars (XAG/USD), so the currency matters. A strong Dollar can pressure silver, while a weaker Dollar supports prices. Other influences include investment demand, mining supply, and recycling flows.

Industrial Demand and the Gold Link

Silver has extensive industrial use, particularly in electronics and solar energy. Its high electrical conductivity exceeds that of copper and gold. Strong industrial demand can lift prices, while weak demand may push them lower. Economic activity in the US, China, and India also impacts silver through industry and jewelry demand.

Silver often follows gold. When gold rises, silver typically gains as well. Investors monitor the Gold/Silver ratio to gauge relative value. A high ratio may indicate silver is undervalued, while a low ratio could signal the opposite.