Silver Price Drops Toward $35.50 as Profit-Taking and Easing Iran Tensions Hit Safe-Haven Demand

Silver Price Falls Toward $35.50 Amid Profit-Taking and Geopolitical Easing

Silver (XAG/USD) extended its bearish streak into the third consecutive session on Friday, slipping below $35.80 during the early European hours. The drop comes as traders take profits after recent highs and scale back positions to cover losses elsewhere in their portfolios.

Market Drivers

Profit-Taking Leads the Decline

• After a strong rally in previous weeks, silver prices are now experiencing profit-booking, which has intensified selling pressure.
• Many investors are also liquidating metal positions to rebalance risk exposure amid broader market uncertainties.

Geopolitical Risk Pulls Back

• Market sentiment turned slightly risk-on following comments from US President Donald Trump, who signaled a delay in any military strike on Iran.
• Trump hinted at offering Iran a final chance to negotiate on its nuclear program, easing fears of immediate escalation in the Iran-Israel conflict.

Macro Developments

China’s PBoC Keeps Loan Prime Rates Steady

• The People’s Bank of China (PBoC) kept its one-year and five-year Loan Prime Rates unchanged at 3.00% and 3.50% respectively.
• This neutral policy stance offered no additional support for commodities like silver, which often gain on monetary easing signals.

Technical Analysis

• XAG/USD is eyeing support near $35.50, a key psychological and technical level.
• A clean break below may open the door toward $34.80 support (50-day SMA).
• Resistance stands near $36.20, where sellers have re-entered over the past two sessions.

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• US-Iran Tensions: What’s Next for Safe-Haven Markets
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