Silver prices moved higher on Friday as improving global market sentiment and hopes for a possible peace agreement between the United States and Iran supported demand for precious metals.
Silver, traded as XAG/USD, recovered from earlier losses during the European trading session and climbed back toward the mid-$67 range. Investors are now watching the key resistance level near $69, which analysts believe could open the door for further gains if broken.
The recent recovery has been supported by comments from U.S. President Donald Trump, who said the United States and Iran had reached what he described as a “great settlement” and suggested a deal could be finalized within days. Although Iranian officials have sounded more cautious, they acknowledged that negotiations appear closer to success than before.
At the same time, lower U.S. Treasury yields have added support for silver prices. Precious metals often benefit when bond yields decline because they do not pay interest and become more attractive to investors.
Economic data released in the United States also influenced market sentiment. Producer Price Index (PPI) figures showed that headline inflation rose to its highest level in more than three years, while core inflation remained stable instead of increasing further as many expected.
This has strengthened expectations that inflation pressures from energy prices may begin easing, reducing the likelihood of additional interest rate hikes by the U.S. Federal Reserve.
From a technical perspective, analysts say silver’s recent price action is showing signs of a potential bullish “Head and Shoulders” pattern, which is often considered a positive reversal signal in financial markets.
Silver was trading around $67.46 at the time of reporting, maintaining a constructive short-term outlook. Market indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) also suggest bullish momentum is building.
If silver breaks above the weekly high near $69.03, analysts believe the rally could extend toward the $71 and $72 levels, with a possible longer-term target near $75.
On the downside, support is currently holding near $65.90. As long as prices remain above that level, traders believe the bullish outlook could remain intact.
