Silver slides over 3% on Thursday, closing in on year-to-date low near $54.77
Silver (XAG/USD) fell more than 3% on Thursday, dropping below $56.00 as a rally in oil prices pressured precious metals and put the year-to-date low at $54.77 back in view.
The metal reversed sharply after briefly testing the $58.00 area, extending a broader downtrend that has weighed on silver in recent sessions. Gains in crude oil were cited as a key drag on precious metals demand.
Oil prices jumped after reports that Israel may resume strikes on Iran once the US midterm elections are over, a development that would complicate efforts to reach a negotiated end to the conflict. Separately, attacks by the Iran-backed Houthis on Saudi Arabia have intensified, including a drone strike on Saudi Aramco’s Shaybah oil field that reportedly killed two people and revived concerns over potential supply disruptions.
Brent crude rose more than 2% over two sessions to trade above $108.00 a barrel, nearing the five-month high of $109.37 reached in mid-May.
On the charts, silver trades within a broad descending channel, with the 4-hour Relative Strength Index near 36 and the MACD in negative territory, both pointing to persistent downside pressure. Immediate support lies between last week’s low of $55.10 and the year-to-date low of $54.77, with a deeper floor near $53.65. On the upside, resistance sits around $58.50, followed by $60.35 and the early-October high near $62.00.
Why it matters: Rising oil prices linked to Middle East tensions are curbing demand for precious metals even as geopolitical risk typically supports safe havens, creating a tug-of-war that is driving sharp swings in silver and potentially gold.
Source: FXStreet