Silver Price Forecast: XAG/USD bulls await breakout through trend-line hurdle near $57.25
- Silver attracts some buyers for the second consecutive day.
- The upside remains capped near the falling wedge hurdle.
- Failures near the 200-SMA on H4 favor bearish traders.
Silver (XAG/USD) sticks to its modest intraday gains during the early European session on Monday and currently trades just below the $57.00 mark, up over 1.50% for the day. The white metal, however, remains within striking distance of its lowest level since December 2025, around the $54.80-$54.75 region touched on Friday, amid a mixed technical setup.
The price action between two converging trend-lines constitutes the formation of a bullish reversal pattern – falling wedge – on the 4-hour chart. However, repeated failures to make it through the 100-period Simple Moving Average (SMA) on the said chart favor the XAG/USD bears. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram has turned modestly positive, hinting at a mild recovery attempt. However, the Relative Strength Index (RSI) around 45 still points to only tentative demand after a prior oversold phase.
On the topside, initial resistance is located at the reclaimed break area of the descending trend line near $57.24, where prior rallies have been rejected. The subsequent hurdle emerges at the 100-period SMA around $58.98, which reinforces the broader bearish structure. Unless bulls can force a sustained move above these caps, the XAG/USD is likely to remain vulnerable to renewed selling on intraday rebounds, with downside levels to be defined by fresh price action, given the lack of nearby mapped supports in the current dataset.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
XAG/USD 4-hour chart
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.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
