The US dollar index retreated slightly, supporting a continued rebound in silver prices.
2026-07-10 14:51:21
Spot silver prices continued their upward trend in early European trading on Friday, with XAG/USD rising approximately 0.2% to around $60. The main reason for silver's support was the continued pressure on the US dollar, coupled with easing market concerns about further escalation of tensions between the US and Iran, which drove funds back into the precious metals market.
The US dollar index has continued to weaken recently, with the Dollar Index (DXY), which measures the dollar's performance against six major currencies, falling to around 100.76, after briefly touching a three-week low of around 100.60 during the session. Since silver is priced in US dollars, a weaker dollar typically reduces the cost of purchasing silver for non-dollar investors, thus increasing its attractiveness.
The US dollar index fell to a three-week low, providing significant support for silver prices . In the current market environment, the dollar's performance remains a crucial factor influencing precious metal prices; if the dollar continues to be under pressure, silver may gain further upward momentum. Changing market expectations regarding the development of US-Iran relations are also a significant factor driving the silver rebound. Previously, the escalation of tensions between the US and Iran increased market demand for safe-haven assets. However, the latest news indicates that the US still maintains that technical communication is continuing, despite President Trump's previous statement that the relevant understanding framework had ended.
Trump previously stated that Iran wanted a deal, but he also expressed doubt about whether Iran would abide by it. This uncertainty kept the market cautious but also reduced the likelihood of significant short-term volatility in risk assets. Meanwhile, the decline in oil prices indirectly supported silver's performance. Oil prices surged at the beginning of the week due to supply risks but subsequently underwent a significant correction, with WTI crude oil currently hovering around $72. The decline in oil prices reduced market concerns about a rapid rise in short-term inflation, while simultaneously causing the precious metals market to refocus on the US dollar and interest rate factors.
From a macroeconomic perspective, US inflation data will be a crucial factor influencing silver's price movement in the next phase. The market anticipates that the upcoming US June Consumer Price Index (CPI) data will help investors assess the Federal Reserve's future interest rate policy path. If inflation continues to cool, the market may increase expectations for interest rate cuts, thereby reducing pressure on real yields and benefiting silver.
From a daily chart perspective, silver prices are currently maintaining their rebound, and after regaining the $60 mark, short-term bullish momentum has strengthened. The moving average system shows that the price is trading near short-term moving averages, and the upward structure remains intact. Resistance is seen in the $60.80 to $61.50 area; a break above this area could lead to a further test of the $62.00 level. Support is seen at $59.50, $58.80, and $58.00. The MACD indicator suggests that bullish momentum is gradually recovering, but continued attention should be paid to resistance at higher levels.
From a 4-hour chart perspective, XAG/USD is in a fluctuating upward phase, with short-term moving averages providing support and market buying gradually strengthening. The RSI indicator remains in a bullish zone, indicating improved short-term sentiment, but the price is approaching resistance near $60.80. A failure to break through this level could lead to a technical pullback. If silver can hold firmly above the $61 area, it is expected to continue its rebound; however, a break below $59.50 could damage the short-term upward structure.
Editor's Summary : Silver's recent rise has been primarily driven by a weaker dollar, renewed safe-haven demand, and a pullback in oil prices. The market focus is currently shifting from simple geopolitical risks to the dollar's trajectory, Federal Reserve policy expectations, and changes in US inflation. In the short term, if the dollar continues to weaken while US inflation data falls short of expectations, silver may further challenge the area above $61. However, if CPI data is strong, prompting the Federal Reserve to maintain a high-interest-rate stance, a dollar rebound could limit silver's upside potential. Going forward, investors should pay close attention to changes in the dollar index, Federal Reserve policy signals, and changes in global risk sentiment.
The US dollar index has continued to weaken recently, with the Dollar Index (DXY), which measures the dollar's performance against six major currencies, falling to around 100.76, after briefly touching a three-week low of around 100.60 during the session. Since silver is priced in US dollars, a weaker dollar typically reduces the cost of purchasing silver for non-dollar investors, thus increasing its attractiveness.
The US dollar index fell to a three-week low, providing significant support for silver prices . In the current market environment, the dollar's performance remains a crucial factor influencing precious metal prices; if the dollar continues to be under pressure, silver may gain further upward momentum. Changing market expectations regarding the development of US-Iran relations are also a significant factor driving the silver rebound. Previously, the escalation of tensions between the US and Iran increased market demand for safe-haven assets. However, the latest news indicates that the US still maintains that technical communication is continuing, despite President Trump's previous statement that the relevant understanding framework had ended.
Trump previously stated that Iran wanted a deal, but he also expressed doubt about whether Iran would abide by it. This uncertainty kept the market cautious but also reduced the likelihood of significant short-term volatility in risk assets. Meanwhile, the decline in oil prices indirectly supported silver's performance. Oil prices surged at the beginning of the week due to supply risks but subsequently underwent a significant correction, with WTI crude oil currently hovering around $72. The decline in oil prices reduced market concerns about a rapid rise in short-term inflation, while simultaneously causing the precious metals market to refocus on the US dollar and interest rate factors.
From a macroeconomic perspective, US inflation data will be a crucial factor influencing silver's price movement in the next phase. The market anticipates that the upcoming US June Consumer Price Index (CPI) data will help investors assess the Federal Reserve's future interest rate policy path. If inflation continues to cool, the market may increase expectations for interest rate cuts, thereby reducing pressure on real yields and benefiting silver.
From a daily chart perspective, silver prices are currently maintaining their rebound, and after regaining the $60 mark, short-term bullish momentum has strengthened. The moving average system shows that the price is trading near short-term moving averages, and the upward structure remains intact. Resistance is seen in the $60.80 to $61.50 area; a break above this area could lead to a further test of the $62.00 level. Support is seen at $59.50, $58.80, and $58.00. The MACD indicator suggests that bullish momentum is gradually recovering, but continued attention should be paid to resistance at higher levels.
From a 4-hour chart perspective, XAG/USD is in a fluctuating upward phase, with short-term moving averages providing support and market buying gradually strengthening. The RSI indicator remains in a bullish zone, indicating improved short-term sentiment, but the price is approaching resistance near $60.80. A failure to break through this level could lead to a technical pullback. If silver can hold firmly above the $61 area, it is expected to continue its rebound; however, a break below $59.50 could damage the short-term upward structure.
Editor's Summary : Silver's recent rise has been primarily driven by a weaker dollar, renewed safe-haven demand, and a pullback in oil prices. The market focus is currently shifting from simple geopolitical risks to the dollar's trajectory, Federal Reserve policy expectations, and changes in US inflation. In the short term, if the dollar continues to weaken while US inflation data falls short of expectations, silver may further challenge the area above $61. However, if CPI data is strong, prompting the Federal Reserve to maintain a high-interest-rate stance, a dollar rebound could limit silver's upside potential. Going forward, investors should pay close attention to changes in the dollar index, Federal Reserve policy signals, and changes in global risk sentiment.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
