Silver Price Forecasts: XAG/USD dips below $75.00 amid growing risk aversion

Silver (XAG/USD) resumes its immediate bearish trend on Thursday, following a frail recovery attempt the previous day. The precious metal struggles amid a stronger US Dollar (USD), and dives to fresh 10-day lows below $75.00 with investors increasingly averse to risk as the US-Iran peace process stalls.

Iranian authorities announced on Thursday that they have collected the first tolls from ships passing the Strait of Hormuz, although they have not provided further details about the ships or their destinations. Previously, US President Donald Trump threatened to target vessels that pay Iranian authorities to cross the waterway.

On Wednesday, Iran seized at least two ships while the US military redirected at least three Iranian Oil tankers in the Indian Ocean. These actions are escalating the tensions between the two rival countries amid a complete absence of about the next round of peace talks, which were scheduled to resume this week.

Technical Analysis: Potential bearish flag formation

XAG/USD has broken below the bottom of the bullish channel from the late-March lows and is trading lower. Thursday's bearish candle on the daily chart highlights an impulsive reversal from a previous support area around the $78.50 level, confirming that sellers have taken control.

Technical indicators in the daily chart are mixed. The Relative Strength Index (RSI) has dropped below the 50 line, while the Moving Average Convergence Divergence (MACD) stays marginally positive, but the MACD line seems about to cross below the Signal line, altogether hinting at fading bullish momentum.

Bears are focusing on the $72.60 area, which provided support on April 8, 9, and 13, ahead of the $70.00 psychological level and the April 7 low, near $68.30. On the flip side, upside attempts are likely to be challenged at the mentioned $78.50 area and the reverse trendline, now around $79.50.

(The technical analysis of this story was written with the help of an AI tool.)