Silver (XAG/USD) rebounded during Friday's European session, recovering previous losses and trading in the mid-$67.00s, specifically at $67.46 at the time of writing [1]. The price movement was supported by a moderately optimistic market mood, driven by hopes for a peace deal between the US and Iran and a decline in US Treasury yields, which favored the yieldless precious metal [1]. US President Donald Trump stated that the US and Iran had reached a 'great settlement' for a deal expected to be signed 'in the next days.' However, Iranian authorities expressed a more reserved stance, with Foreign Ministry Spokesperson Esmail Baghadei indicating that the possibility of a deal is closer than ever before [1].
In the US, the Producer Price Index (PPI) figures released on Thursday showed mixed results: headline inflation accelerated to its highest level in over three years, while core inflation remained unchanged, contrary to expectations of further growth [1]. This outcome has led to hopes that the impact of rising energy prices may be diminishing, which in turn has reduced expectations for additional Federal Reserve rate hikes [1].
From a technical perspective, XAG/USD is displaying a constructive immediate bias, with Friday's higher low suggesting a potential bullish Head & Shoulders pattern—a common bottoming formation [1]. Technical indicators such as the Relative Strength Index (RSI) on 4-hour charts are around the mid-50s, and the Moving Average Convergence Divergence (MACD) is in positive territory, both signaling building bullish momentum [1]. A break above the weekly high at $69.03 would confirm the Head & Shoulders formation, potentially targeting resistance zones at $71.05 and $72.10, with the measured target near the June 4 high around $75.00 [1]. Downside moves have so far been contained above $65.90, preventing a retest of Thursday's lows at $61.50 [1].
CONCLUSION
Silver prices are showing renewed strength amid optimism over a potential US-Iran deal and easing US Treasury yields. Technical indicators point to a bullish outlook, with key resistance levels in focus if momentum continues. Market sentiment remains positive, though some caution persists due to mixed inflation data and differing signals from US and Iranian officials.