Silver Price Forecast: XAG/USD rallies from $61.50, but remains bearish
- Silver rebound remains capped below 200-day SMA resistance.
- RSI exits oversold territory, but remains below neutral.
- Break above $67 exposes 200-day SMA and $70.00.
Silver price advances over 4% after bouncing off daily lows of $61.51 after US President Donald Trump cancelled scheduled attacks against Iran this evening, saying that final points have been approved. At the time of writing, the XAG/USD trades at $65.91.
XAG/USD Price Forecast: Technical outlook
Silver turned downward biased. Even though it has recovered some ground, it remains below the 200-day Simple Moving Average (SMA) of $68.31, which is used to signal changes in the asset's direction.
The Relative Strength Index (RSI) exited oversold territory, an indication that buyers moved in, but the index remains below the 50-neutral level, suggesting the white metal remains tilted to the downside.
If Silver rises past the $67.00 mark, this would open the door to challenge the 200-day SMA. Above this level, the next stop would be the $70.00 milestone.
On the bearish side, the first support for XAG/USD is the current week’s low at $61.50. A breach of the latter will expose the $60.00 mark, followed by the November 13, 2025, high turned support at $54.39.
XAG/USD Price Chart – Daily
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Recommended Articles
