• Silver holds firm on Wednesday after rising earlier in the day, supported by a broadly weaker US Dollar.
• Traders continue to assess evolving geopolitical developments amid uncertainty over the durability of the US-Iran ceasefire.
• Technicals show consolidation within a bearish flag on the 4-hour chart.

Silver (XAG/USD) trades with a positive bias on Wednesday, supported by a broadly weaker US Dollar following a two-week ceasefire agreement between the United States and Iran. At the time of writing, XAG/USD is trading around $74.50, up nearly 2% on the day after hitting an intraday high of $77.65.

Despite the softer Greenback, the metal struggles to extend gains as traders continue to assess evolving geopolitical risks. While Crude prices retreated sharply after the ceasefire news, the decline has stalled amid uncertainty around the durability of the agreement.

Reports of airstrikes across the Middle East, including Israeli strikes on Lebanon and attacks reported in Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain, highlight persistent tensions. Iranian officials have also warned that Tehran could withdraw from the ceasefire agreement if attacks on Lebanon continue.

This keeps markets on edge over whether a full resolution can be reached and whether Oil prices can see a meaningful and sustained decline. Until then, expectations for tighter monetary policy are likely to remain in place, limiting further upside in non-yielding assets like Silver.

From a technical perspective, the 4-hour chart shows XAG/USD trading within a bearish flag pattern. The near-term bias is mixed as prices stabilize between key moving averages.

The 100-period Simple Moving Average (SMA) at $72.63, which closely aligns with the lower boundary of the flag, is acting as immediate support and cushioning the downside. A break below this level could confirm a bearish continuation, exposing the next support at Tuesday’s low near $68.28, followed by the March swing low around $61.00.

On the upside, the 200-period SMA near $79.00 coincides with the upper boundary of the flag and continues to cap gains. A sustained break above this zone would negate the bearish structure and could trigger a recovery toward the mid-$80s, with scope to extend toward the $90.00 region.

Momentum indicators remain mildly constructive. The Relative Strength Index (RSI) is hovering in the mid-50s, while the Moving Average Convergence Divergence (MACD) remains in positive territory, suggesting steady buying interest despite the consolidation within the broader uptrend.