Silver Holds Near 10-Day Low as Firm Oil Prices Weigh

Key Moments

Silver Under Pressure as Oil Extends Weekly Gains

Silver (XAG/USD) is trading defensively around $75 during Friday’s Asian session, hovering near its lowest level in 10 days. The metal remains under downward pressure as oil prices stay firm, supported by the extended closure of the Strait of Hormuz, a key conduit for nearly 20% of global energy flows.

At the time of writing, WTI crude oil is holding gains close to $95.00, marking the highest level in more than a week. This strength in oil has been a persistent headwind for silver, as elevated energy costs have fueled global inflation expectations and kept monetary policymakers wary of adopting a more dovish stance.

Tighter or unchanged policy settings from central banks tend to be unfavorable for non-yielding assets such as silver, given the absence of income generation compared with interest-bearing instruments.

Central Bank Decisions in Focus

Looking ahead, market participants are preparing for a series of key monetary policy decisions from major central banks next week. The Bank of Japan (BoJ), the Federal Reserve (Fed), and the European Central Bank (ECB) are all scheduled to announce their latest policy outcomes.

The Fed is anticipated to keep its benchmark interest rate unchanged in a range of 3.50%-3.75%. Policymakers are also expected to signal continued vigilance toward upside inflation risks, particularly those linked to ongoing geopolitical tensions.

Technical Picture: Bearish Tone Persists for XAG/USD

From a technical standpoint, XAG/USD remains under pressure below the $75 mark, with a bearish short-term bias following a breakdown of an Ascending Triangle pattern on the daily chart. The pair has slipped beneath the rising support boundary of this formation, indicating that sellers continue to dominate.

The Relative Strength Index (14) stands at 45.26, staying under the neutral 50 level. This reading points to subdued upside momentum rather than signaling an oversold market condition.

On the downside, the April 13 low at $72.61 is the first notable support level. A clear move below that price would open the door to the April 7 low at $68.28. On the upside, the former ascending trendline near $79.30 now acts as initial resistance; only a sustained break above that area would strengthen the case for a move toward the horizontal ceiling of the prior pattern around $83.35.