XAG/USD Current price: $89,26

• Crude oil prices further retreated from multi-year highs, weighing on the Greenback.
• Easing oil supply concerns amid speculation on reserve releases underpinned the mood.
• XAG/USD regains its bullish poise, faces resistance at around $92.90.

Silver is up for a third consecutive day on Tuesday, helped by a better market mood, weighing on US Dollar (USD) demand. The XAG/USD pair nears the $90 mark despite the escalating crisis in the Middle East.

So far, traffic through the Strait of Hormuz remains restricted by Iranian forces, and oil-producing countries have yet to decide whether to release emergency reserves. However, the G7 asked their energy agencies to be prepared to deploy oil reserves if necessary, while Pete Hegseth, United States (US) Secretary of War, said that Iran made a big mistake targeting its neighbors and threatened to hit Iran “harder than ever,” if the country interrupts oil flows.

The news was enough to push West Texas Intermediate (WTI) crude oil below the $80.00 mark during US trading hours, putting additional pressure on the USD and boosting stocks.

While the Persian Gulf war seems far from over, panic is now under control, and there seem to be better opportunities for Silver longs.

The extent of the conflict determines whether the WTI spike towards $120 a barrel was just a temporary reaction or if it would become a new reality.

XAU/USD short-term technical outlook

In the 4-hour chart, XAG/USD trades at $89.26. The near-term bias is mildly bullish as price has reclaimed the 32.8% Fibonacci retracement of the prior slide from $96.62 to $77.97 at $85.09, hinting at a continuation attempt after the recent rebound from mid-$82s. The 20-period Simple Moving Average (SMA) has turned higher above the flatter 100-period and 200-period SMAs, and price trades above them all. The Momentum indicator holds above its midline and has eased from recent highs, while the Relative Strength Index (RSI) indicator hovers in the low 60s, consistent with a limited bullish potential

Initial resistance emerges at the 61.8% retracement at $89.50, followed by a daily peak in the $91.30 price zone. Support, on the other hand, comes at the rising 20-period SMA around $85.10, followed by the 38.2% retracement at $85.09. Further downside would focus on the 23.6% retracement at $82.37, aligning with the late-January reaction lows and reinforcing it as a pivotal floor for the broader recovery.

In the daily chart, the XAG/USD bias is mildly bullish as spot holds above the 20-day SMA at $83.58, that has flattened but still runs well above the rising 100- and 200-day SMAs, keeping the broader uptrend intact. Momentum remains positive with the 14-day Momentum indicator above 0 and the Relative Strength Index (RSI) holding above the 50 line, reinforcing a preference for upside continuation while current supports hold.

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