Silver fell again after two sessions of gains, as renewed escalation in the Middle East weighed on broader risk sentiment. Higher oil prices also added pressure, with markets wary that inflation risks could keep the US Federal Reserve cautious.
Silver was described as more fragile and volatile than gold, partly because it is linked to growth and industrial demand as well as demand for precious metals. After a failed move higher, near-term momentum stayed soft and rallies were expected to be sold unless the US dollar, US Treasury yields and risk sentiment improved.
Daily momentum was mild bearish, while the recent rise in the relative strength index (RSI) moderated. Risks were described as skewed to the downside.
Immediate support levels were set at 70 and 63.50, with 63.50 marked as the 200-day moving average (DMA). A break below these levels was linked to a possible pullback towards 50.
Resistance was listed at 75, identified as the 21-day moving average (DMA). Further resistance was placed at 78 and 80, corresponding to the 50-day and 100-day moving averages (DMAs).
We see that silver is weakening again as renewed tensions in the Middle East and oil prices surging back above $95 a barrel are making traders nervous. This situation makes silver’s outlook more fragile than gold’s because it is also tied to industrial demand, which often slows in times of uncertainty. The momentum for a price increase has stalled after it failed to break higher.
Given silver’s link to industrial growth, its performance is concerning. The latest global manufacturing PMI data from April 2026 showed a contraction for the third straight month, signaling a slowdown in the industrial demand that silver relies on. This confirms the metal’s weak position compared to gold, which benefits more directly from a flight to safety.
The macroeconomic environment is also working against silver. With the US 10-year Treasury yield holding firm above 4.5%, the appeal of non-yielding assets like silver is reduced. This pressure is unlikely to ease in the near term, especially as the US Dollar remains strong.
For the coming weeks, we should consider strategies that benefit from falling prices or limited upside. Buying put options with strike prices below the immediate support level of 70 could be a direct way to position for a drop towards the 200-day moving average at 63.50. A clean break of that support could open up a much deeper pullback toward the 50 level.
If we expect rallies to be short-lived, selling call options or implementing bear call spreads with strikes around the resistance levels of 75 and 78 would be a viable strategy. This approach profits if silver’s price stays below these levels, aligning with the view that any upward moves will likely be sold off. We saw a similar setup in the fall of 2025 when a brief spike in silver was quickly reversed as industrial forecasts softened.
