XAG/USD declines to near $79.30 as Iran closes Hormuz again

• Silver price declines to near $79.30 on the re-closure of the Strait of Hormuz.
• Iran closes Hormuz again in retaliation for Washington’s blockade.
• Renewed Mideast tensions have improved the US Dollar’s safe-haven demand.

Silver price (XAG/USD) is down 1.7% to near $79.30 during the early European trading session on Monday. The white metal faces selling pressure as Iran closes the Strait of Hormuz, a vital passage to almost 20% of global energy supply, again, as part of retaliation against the United States (US) continuous blockade of Iranian sea ports.

On Friday, Iran announced the complete opening of the Hormuz for all commercial ships after the ceasefire between Israel and Lebanon.

The closure of the Strait of Hormuz has resulted in a sharp increase in oil prices, with the WTI Oil price surging 3.7% to near $88.

Higher oil prices lead to de-anchoring global inflation expectations, a scenario that weighs on dovish central banks’ expectations, which eventually diminishes the appeal of non-yielding assets, such as Silver.

Meanwhile, the US Dollar (USD) ticks higher as the Hormuz closure and Iran’s denial of the resumption of negotiations with the US, have improved its safe-haven appeal. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% higher to near 98.35. Technically, a higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors.

Silver technical analysis

XAG/USD trades lower at around $79.30 as of writing. However, the white metal holds a constructive bullish bias as price stays above the 20-day Exponential Moving Average (EMA) at $76.85 and the rising border of the Ascending Triangle formation coming in around $76. This positioning suggests buyers retain control after rebounding from recent lows, while a mid-range Relative Strength Index (RSI) near 56 hints at steady, rather than stretched, upside momentum.

On the downside, immediate support is seen first at the upward-sloping border of the above-mentioned chart pattern around $76. A close below $76 would weaken the near-term bullish structure and expose the price towards the April 13 low of $72.61. Looking up, the spot could extend its upward trend towards the March 12 high of $87.45 if it manages a decisive breakout above the April 17 high of $83.06.