Silver (XAG/USD) will trade in positive territory for a second straight day on Thursday, although it misses follow-on purchases and remains circumscribed in its broader range from the previous day. During the Asian session, the white metal remains above the $84.00 level, up over 1% on the day.
The short-term bias is slightly bearish as XAG/USD pulls back from last week’s $86 area, holding below the rising 100-period basic moving average (SMA) on the 1-hour chart. The mentioned SMA is established near $88 and should now act as overarching vigorous resistance.
The Moving Average Divergence (MACD) indicator is returning to the zero line after an earlier positive phase. The relative strength index (RSI) is hovering just below 50, reinforcing a consolidative to soft bearish tone rather than impulsive selling.
Initial resistance appears at recent intraday highs near $85.00, before turning tighter near $86.20, where previous highs coincide with waning growth momentum. A break above the latter would open the way to the $88.00 region, where the 100-hour SMA is clustered, and is expected to spark renewed selling interest.
On the other hand, immediate support is located at $83.50, with a deeper low at $82.00, close to the recent reaction low and near the trendline. A clear drop to $82.00 would expose the $80.95 trendline breakout area as the next bear target, signaling a more decisive break from the dominant medium-term uptrend.
Meanwhile, the upside support trend line from around $64 remains intact, but the recent pullback towards the low $80s shows that buyers are losing immediate control.
(The technical analysis for this story was written with the lend a hand of an AI tool.)
XAG/USD 1-hour chart
Silver FAQs
Silver is a precious metal that investors like to trade. Historically, it has been used as a store of value and a medium of exchange. Although less popular than gold, investors may turn to silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during periods of high inflation. Investors can buy physical silver in coins or bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can fluctuate due to many factors. Geopolitical instability or fear of a deep recession may push silver prices higher due to its safe-haven status, although to a lesser extent than gold. As a non-yielding asset, silver tends to rise at lower interest rates. Its movements also depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAG/USD). A sturdy dollar tends to keep the price of silver at bay, while a weaker dollar will likely push prices higher. Other factors such as investment demand, mining supply – there is much more silver than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in sectors such as electronics and solar energy, because it has one of the highest electrical conductivities of all metals – greater than copper and gold. An raise in demand can raise prices, while a decrease usually lowers them. The dynamics of the economies of the United States, China and India can also contribute to price fluctuations: in the case of the United States and especially China, vast industrial sectors exploit silver in various processes; in India, consumer demand for precious metals for jewelry production also plays a key role in pricing.
Silver prices usually follow the movements of gold. When gold prices rise, silver tends to follow suit because their status as safe-haven assets is similar. The gold-to-silver ratio, which shows the number of ounces of silver needed to equal the value of one ounce of gold, can lend a hand determine the relative valuation of the two metals. Some investors may view a high ratio as an indicator that silver is undervalued or gold is overvalued. On the contrary, a low ratio may suggest that gold is undervalued relative to silver.
