- Silver price loses momentum to around $93.75 in Monday’s early European session.
- The constructive outlook of Silver remains intact, with the price holding above the 100-day EMA.
- The initial support level is located at $82.00; immediate resistance emerges at $97.00.
Silver price (XAG/USD) edges lower to near $93.75 during the early European session on Monday, pressured by a renewed US Dollar (USD) demand. Traders will closely monitor the developments surrounding the US-Iran conflict. Hotter-than-expected US Producer Price Index (PPI) inflation provides some support to the Greenback and undermines the USD-denominated commodity price.
Nonetheless, the potential downside for the white metal might be limited, as escalating tensions in the Middle East could boost safe-haven demand. US President Donald Trump said on Monday that combat operations will continue in Iran until America’s objectives are met.
(This story was corrected on March 2 at 06:55 GMT to say that the potential downside for the white metal might be limited as escalating tensions in the Middle East could boost safe-haven demand, not upside).
Technical Analysis:
In the daily chart, XAG/USD holds well above the 100-day exponential moving average near $72.0, preserving the broader uptrend despite recent volatility.
Daily candles remain in the upper half of the Bollinger envelope, and the middle band around $82.0 acts as dynamic trend support after the sharp pullback from the highs. RSI around 59 stays above its midline and turns higher, indicating renewed buying interest rather than exhaustion at current levels.
Immediate resistance emerges at the recent swing high near $97.00. A clear break above this area would open the way toward the psychological $100.00 region. On the downside, initial support stands at the mid-Bollinger band and prior congestion around $82.00, with a deeper floor at the rising 100-day EMA near $72.00.
