FX.co ★ XAU/USD, GOLD

Silver (XAG/USD) Technical and Fundamental Analysis Silver prices staged a powerful rebound on Friday after briefly sliding below the critical $78.00 level during the Asian session, reigniting bullish momentum across the precious metals market. XAG/USD quickly erased overnight losses and surged back above the major $80.00 psychological barrier, putting the metal on track for one of its strongest weekly performances in recent sessions. Renewed geopolitical uncertainty in the Middle East, combined with shifting expectations around Federal Reserve policy, has significantly boosted investor interest in silver as both a safe-haven and industrial asset. The latest rally in silver was fueled by escalating tensions surrounding the Strait of Hormuz after U.S. Central Command confirmed targeted strikes against Iranian military facilities allegedly linked to attacks on commercial vessels operating near the strategic shipping route. Tehran responded by accusing Washington of violating the existing ceasefire agreement through attacks on locations inside and around the waterway. Despite the renewed conflict risk, U.S. President Donald Trump stated that the ceasefire remains intact and insisted that any official breakdown in negotiations would become immediately clear. Meanwhile, comments from U.S. defense officials emphasizing that Washington does not seek broader military escalation weakened demand for the U.S. dollar and provided additional support for precious metals. At the same time, crude oil markets struggled to extend earlier gains even as geopolitical tensions remained elevated, reflecting growing hopes that diplomatic efforts could still prevent a larger regional conflict. Trump warned that failure by Iran to finalize a proposed agreement could trigger a far more aggressive U.S. response, keeping traders cautious across commodity markets. Investors are also closely monitoring inflation trends and the broader economic outlook, as stronger price pressures and resilient U.S. data continue to push back expectations for Federal Reserve rate cuts. Markets are increasingly pricing in higher-for-longer interest rates, limiting downside pressure on the dollar while creating a volatile environment for gold and silver prices. Market attention now turns to the highly anticipated U.S. Nonfarm Payrolls (NFP) report, which could become the next major catalyst for silver volatility. Analysts expect the U.S. economy to have added approximately 62,000 jobs in April, sharply lower than the previous 178,000 reading. The unemployment rate is forecast to remain steady at 4.3%, while average hourly earnings are expected to increase 3.8% year-over-year. A weaker labor market report could revive expectations for future Federal Reserve easing and potentially accelerate bullish momentum in silver and other precious metals. Technically, Silver (XAG/USD) is trading near 79.35 and continues to display a strong recovery structure across both the H4 and H1 timeframes. On the H4 chart, buyers aggressively defended the major demand zone between 74.50 and 75.50, creating a solid support foundation marked by repeated bullish rebounds and higher lows. This region now represents a key accumulation area that continues to support the broader uptrend. On the upside, strong resistance remains visible around the 81.00–82.50 supply zone, where previous rallies encountered intense selling pressure. The 20-period SMA on H4 is trending higher beneath current price action, confirming strengthening short-term bullish momentum, while the 50 SMA continues to provide medium-term trend support. On the H1 timeframe, intraday price action highlights immediate support near the 77.80–78.50 region, where dip buyers repeatedly entered the market during recent pullbacks. Meanwhile, resistance remains concentrated between 80.00 and 80.80, a crucial breakout zone that bulls must clear to extend gains toward higher levels. The 20 SMA on H1 is acting as dynamic short-term support, while the 50 SMA reinforces the ongoing bullish intraday structure. As long as silver remains above both moving averages, the short-term outlook favors continued upside momentum, although a decisive move below the 20 SMA could trigger temporary corrective pressure toward lower support levels.