Silver: Downside risks build on geopolitical shock – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong highlights renewed weakness in Silver as Middle East tensions and higher Oil prices weigh on risk sentiment. The bank notes Silver’s more fragile profile versus Gold, with soft momentum after a failed breakout and rallies likely to be sold unless USD, US Treasury yields and risk sentiment improve. Downside risks dominate with key supports and resistances mapped out.

Geopolitics and soft momentum pressure silver

"Silver fell again, snapping two sessions of gains, as renewed escalation in the Middle East weighed on broader risk sentiment."

"The move reinforces silver’s more fragile and volatile setup versus gold. While geopolitical uncertainty can support precious metals, silver is also exposed to the growth and industrial-demand linkages."

"With oil prices elevated and markets wary that inflation risks could keep the Fed cautious, silver struggled to find support. "

"Near term, momentum remains soft after the failed break higher, with rallies likely to be faded unless USD, US Treasury yields and risk sentiment turn more supportive."

"Daily momentum is mild bearish while the recent rise in RSI moderated. Risks are skewed to downside."

"Immediate support at 70, 63.50 (200 DMA). Break below those levels risk deeper pullback towards 50. Resistance at 75 (21 DMA), 78/80 (50, 100 DMAs)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)