Silver (XAG/USD) is attracting novel buyers near the $58.25-58.20 zone during Thursday’s Asian session, holding off the previous day’s modest pullback near $61.00, above a two-week high. However, the white metal has no follow-through and is currently trading just above the mid-$59.00 mark, down over 0.40% on the day.
This week’s break through the $59.00 confluence – which includes the 100-period basic moving average (SMA) on the 4-hour chart and the 23.6% Fibonacci retracement level off the June 17 high – has been considered a key boost for XAG/USD bulls. The relative strength index (RSI) at 61.21 remains positive, while the moving average divergence (MACD) histogram remains slightly positive. All dynamics indicators suggest that despite the recent break, the growth dynamics are still constructive, which supports further short-term appreciation movement.
In the meantime, any further move higher will likely encounter initial resistance at the 38.2% Fibo level. retracement at $61.31. This is followed by a 50.0% level at $63.28 and a 61.8% retracement at $65.25, with the 78.6% barrier at $68.05 acting as a broader constraint. The downside is immediate support around the 100-period SMA/23.6% Fibo. confluence level at $58.99, while a deeper pullback would expose the current cycle’s structural anchor near $54.94.
(The technical analysis for this story was written with the support of an AI tool. Find out more.)
XAG/USD 4-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 forceful 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, immense industrial sectors apply 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 support 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.
