The iShares Silver Trust (SLV) surged 5.28% in pre-market trading, reflecting a significant rally in silver prices. This move extends gains from the previous session and aligns with a broader bullish trend in the precious metals sector.
The sharp upward movement is primarily attributed to growing market optimism surrounding a potential agreement between the United States and Iran. Reports of a diplomatic breakthrough have eased inflation concerns, as a reduction in geopolitical tensions is expected to lower oil prices. This development weakens expectations for persistently hawkish central bank policies, providing strong support for non-yielding assets like silver.
From a technical perspective, analysts note that silver has decisively broken above key resistance levels, transitioning from a weak consolidation phase into a stronger, volatile uptrend. The successful hold above the $74 support level and a break above the 10-day moving average confirm a bullish structure, with the next target seen near the $78 resistance level. The overall market sentiment for silver remains positive, supported by its historical correlation with gold's medium-to-long term upward trajectory.
