Silver fell 0.54% during the North American session on Friday, supported by high U.S. Treasury yields and a sudden shift in market sentiment following U.S. President Trump’s revelation that the ceasefire “has ended.” At the time of writing, XAG/USD is trading at $59.66.
XAG/USD Price Forecast: Technical Outlook
Silver is trending lower as the market structure continues to feature a series of lower highs and lower lows. The relative strength index (RSI) remains bearish, below the 50-neutral level and heading towards oversold territory. Given the above reasons and geopolitical uncertainty, the path of least resistance for the XAG/USD pair is down.
To return to the bear market, investors must break the July 8 intraday low of $57.22. Below that is the year-to-date (YTD) low of 55.63 set on June 22, when the price of the white metal has fallen below its 200-day basic moving average (SMA) since mid-June. A break of these two levels paves the way for a move towards the November 13, 2025 support, which hit a high of $54.30.
On the other hand, silver could move to neutral if buyers reclaim the downward resistance trendline established from the June highs in the $62.25-$62.50 area. Once the hurdle is cleared, this opens the door to rivalry with the 50-day and 200-day SMAs, each at $69.94 and $70.31.
XAG/USD Price Chart – Daily
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 appreciate 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 boost in demand can boost 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, gigantic 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 facilitate 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.
