- Silver remains trapped in a consolidation range between key support at 70.09 and resistance at 86.68, with a breakout likely to determine the next major directional move.
- While easing US inflation supports a softer Fed outlook, dovish policy expectations may limit Silver’s upside, making the upcoming FOMC minutes a crucial catalyst.
Silver price advances 5.7% or 4.22 points as of today at 17:00 GMT+2. It rises near $77.77 per ounce at the time of writing. Silver rebounded as tensions between the United States and Iran remain elevated. Ongoing geopolitical uncertainty continues to support safe-haven demand. Let’s take a technical look at the Silver price performance before delving into the fundamental drivers.
The Technical Outlook for Silver Price | Key levels to Watch Highlighted:
Silver price is currently trading within a defined consolidation range, highlighted in green, after the sharp sell-off that followed the previous rally. This range-bound movement suggests a temporary balance between buyers and sellers as the market digests recent volatility.
The upper boundary of this consolidation sits near 86.68, while the lower boundary is positioned around 70.09. A decisive breakout above the 86.68 resistance zone could pave the way for a recovery toward higher resistance levels at 92.05 and potentially 121.89.
On the other hand, a confirmed break below the 70.09 support would likely increase selling pressure and expose the next downside level near 56.19, reinforcing a break continuation scenario.
From the momentum technical indicators’ perspective, the MACD suggests that downside momentum is fading, though a strong bullish crossover has not yet been confirmed. This indicates that the market is still in a neutral-to-cautious phase. The RSI is hovering around the mid-range near the 50 level, reflecting neutral momentum.
Fundamental Factors Shaping Silver Price Action:
On Tuesday, Iranian Foreign Minister Abbas Araqchi said that both sides agreed on key “guiding principles” during nuclear talks. However, he clarified that this does not mean a final idea is close. U.S. President Donald Trump signaled that Iran wants to make a deal, while also warning Tehran it would face consequences if an agreement isn’t reached.
Attention is now shifting to this week’s key risk, the release of the Federal Open Market Committee (FOMC) minutes from the January policy meeting on Wednesday. At that meeting, the Federal Reserve kept interest rates unchanged within the 3.50%-3.75% range, and traders will closely examine the minutes for fresh guidance on the policy outlook.
Recent inflation data has reinforced expectations that the Federal Reserve could maintain a relatively dovish stance. Figures released on Friday showed that US headline inflation eased to 2.4% year-over-year in January, down from 2.7% in December.
Over the same period, the core Consumer Price Index (CPI), which excludes food and energy, rose by 2.5%, slightly softer than the previous 2.6% reading and in line with market expectations. Check Silver Price Forecast 2026-2040
A confirmed breakout above the 86.68 resistance or below the 70.09 support level could determine the next directional trend, with the FOMC minutes acting as a potential catalyst.
Dovish Fed expectations can weigh on non-yielding assets like Silver, while tighter policy expectations typically support the US Dollar and pressure precious metals.