Silver prices recovered some ground on Tuesday, rising 0.69% to trade at $73.22 after bouncing off a daily low of $72.42, following losses on Monday. The improvement in risk appetite supported the precious metals segment, though silver remains capped below the 20-day Simple Moving Average (SMA) at $75.94, a key resistance level for buyers aiming to challenge the $80.00 mark. Technical indicators show bearish momentum, but sellers are losing strength as the Relative Strength Index (RSI) approaches the neutral 50 level. If silver closes near the week's lows around $72.40, further losses are expected, with support at the April 29 swing low of $70.86 and then $70.00. The next major support is the 200-day SMA at $62.52 [1].
Gold (XAU/USD) advanced nearly 1% on Tuesday, trading at $4,560 after rebounding from one-month lows of $4,500. The rally was attributed to a fragile ceasefire between the US and Iran, which lifted risk appetite and pushed Wall Street higher. On Monday, the US and Iran engaged in combat, including US Navy operations in the Strait of Hormuz and Iranian attacks on UAE oil facilities, which led to a spike in oil prices and a temporary appreciation of the US Dollar. By Tuesday, the US Dollar Index (DXY) was modestly down 0.04% at 98.45, and US Treasury yields fell, with the 10-year note dropping 1.5 basis points to 4.416%, providing a tailwind for gold. Money markets expect the Federal Reserve to keep rates unchanged through 2026. Recent US economic data showed a slowdown in activity, with the ISM Services PMI falling to 53.6 in April and JOLTS job openings dropping to 6.866 million. New York Fed President John Williams stated that policy is 'well-positioned' amid Middle East uncertainty and reiterated that rates will need to be cut in the future as inflation moves toward the 2% target. Gold remains range-bound, trading between $4,500 and $4,700, with bearish momentum indicated by the RSI [2].
Both silver and gold prices are responding to shifts in risk sentiment driven by geopolitical developments and macroeconomic data. While silver faces technical resistance and potential for further downside, gold is benefiting from lower yields and expectations of steady Fed policy, though it remains in a sideways trading pattern ahead of key US economic releases [1][2].
CONCLUSION
Silver and gold prices rebounded on Tuesday as easing geopolitical tensions and improved risk appetite supported the precious metals market. While silver remains technically capped and vulnerable to further downside, gold is buoyed by lower yields and expectations of unchanged Fed policy, though both metals are trading within established ranges. Market participants are closely watching upcoming US economic data and Federal Reserve commentary for further direction.