Silver retreats but remains above support levels 

Silver at baseline 

Silver prices fell below $80 an ounce on Wednesday as markets continued to assess the inflation risks stemming from the Middle East conflict and its potential impact on monetary policy.

Tensions between the US, Israel, and Iran entered their third week, with Iran escalating its attacks on energy infrastructure across the region.

While these disturbances have driven investors toward safe-haven assets, they have also kept energy prices high, raising concerns that continued increases could exacerbate inflationary pressures and reinforce the hawkish stance of central banks.

Investors expect the Federal Reserve to keep interest rates unchanged for the second consecutive meeting, while other major central banks, including the European Central Bank, the Bank of England, and the Bank of Japan, are also expected to maintain their current monetary policies.

Despite the recent pullback, silver prices are still up about 12% year-to-date, supported in part by an anticipated supply shortage in 2026 and strong industrial demand from the electronics sector.

Silver Technical Analysis 

Silver prices fell today to near $79 an ounce but are still trading above the support level of $77 an ounce, with a positive divergence on the MACD indicator.

Silver is attempting to form a head and shoulders pattern on the hourly timeframe, and we expect it to rise towards $81.20 and then $82.40 per ounce in the near term, especially if it breaks through the neckline located at $80.25 per ounce.

This scenario would be invalidated if the price breaks below $78 per ounce.