Key Moments
- XAG/USD trades near $69.85 in early Tuesday European dealings, pulling back from a recent weekly high.
- The bearish technical bias persists with price below the 20-day and 100-day SMAs, and the RSI holding under the midline.
- Key levels include resistance at $72.25 and $74.14, with notable support around $63.80.
Intraday Market Overview
Silver prices are under pressure in early European trade on Tuesday, with XAG/USD changing hands around $69.85. The metal has retreated from a weekly peak as market participants take profits ahead of the upcoming interest rate announcement from the US Federal Reserve (Fed).
The prevailing bearish tone remains in place while spot prices hold below the 100-day simple moving average (SMA). Momentum indicators also point to a lack of bullish conviction, as the Relative Strength Index (RSI) stays under the neutral 50 line.
Fed Policy Expectations and Geopolitical Factors
The Fed is widely anticipated to leave its benchmark rate unchanged at a target band of 3.50% to 3.75% at its policy meeting on Wednesday. This policy outlook forms a key backdrop for precious metals, including silver.
Market attention is also trained on developments around a potential US-Iran peace agreement. Progress on a preliminary framework deal between the two countries has eased geopolitical tensions and could help contain downside pressure on silver in the near term.
Expectations for further Fed tightening have moderated following news of the framework deal, which has been supportive for non-yielding assets such as precious metals. According to the CME FedWatch tool, the implied probability of a US rate increase in December has fallen to 58% from nearly 70% a week earlier.
Key Technical Levels for XAG/USD
On the daily chart, XAG/USD continues to trade with a downside bias as it remains below both the 20-day SMA (the middle band of the Bollinger Bands) and the 100-day SMA. This configuration keeps the broader technical structure tilted lower.
The 14-day RSI is positioned slightly below the midline, indicating mild bearish momentum while silver consolidates in the lower portion of its recent trading range.
| Technical Level | Type | Approximate Value |
|---|---|---|
| Bollinger Bands middle line | Initial resistance | $72.25 |
| June 5 high | Next resistance | $74.14 |
| 100-day SMA | Further resistance | Near $78.55 |
| Upper Bollinger Band | Extended resistance | Around $80.72 |
| Lower Bollinger Band | Key support | Roughly $63.80 |
On the upside, the first resistance is located near the Bollinger Bands middle line at around $72.25. A break above this area would bring the June 5 peak at $74.14 into focus, followed by the 100-day SMA around $78.55 and the upper Bollinger Band near $80.72.
On the downside, the next important support is aligned with the lower Bollinger Band around $63.80, where volatility-based buying interest could attempt to slow or pause the prevailing bearish phase.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
