Key Highlights:
- Silver (XAG/USD) climbs to around $36.10 during early Monday trading in Asia.
- Safe-haven demand surges after U.S. strikes on Iran’s nuclear facilities.
- Dovish comments from Fed Governor Waller boost expectations for a rate cut in July.
- US S&P Global PMI data for June remains in focus.
Silver Price Gains as Geopolitical Tensions Escalate
Silver prices bounced back on Monday, rising above the $36.00 level and breaking a three-day losing streak. The rally is driven by rising geopolitical tensions after the United States launched airstrikes on three Iranian nuclear sites—Fordow, Natanz, and Isfahan—over the weekend.
In response, Iran vowed to retaliate, increasing fears of further conflict. U.S. President Donald Trump warned that any Iranian counterattack would be met with “a force far greater” than what was deployed. As geopolitical uncertainty intensifies, investors are flocking to safe-haven assets like silver, pushing prices higher.
Dovish Fed Remarks Support Precious Metals
Adding to the bullish sentiment, Federal Reserve Governor Christopher Waller stated on Friday that the central bank could be ready to cut interest rates as soon as July. These dovish signals have softened the US Dollar and lowered U.S. Treasury yields, both of which are positive for non-yielding assets like silver.
Lower interest rates reduce the opportunity cost of holding silver, making it more attractive to investors and boosting global demand.
Focus Shifts to US PMI Data
Market participants now await the preliminary US S&P Global PMI data for June, set to release later on Monday. Weak readings in services or manufacturing could increase expectations for a Fed rate cut, further fueling upside momentum in silver prices.
XAG/USD Technical Outlook
- Resistance: $36.50, followed by June’s high at $37.23
- Support: $35.60 (recent swing low), followed by $35.00 psychological level
The short-term trend remains bullish as long as XAG/USD holds above $35.60. A daily close above $36.50 could open the door for a fresh rally toward the $37.00 handle.
Bottom Line:
Silver continues to benefit from the risk-off environment and growing expectations of Fed easing. Investors should watch for further developments in the Middle East conflict and upcoming US economic data, which could determine the next directional move in XAG/USD.
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