Silver Price Forecast: XAG/USD hits fresh record highs above $99.00

Silver price reached a fresh high of $99.39 on Friday
XAG/USD stays above the rising nine-day EMA, with the advancing 50-day EMA supporting the medium-term trend.
The 14-day Relative Strength Index at 74.66 suggests stretched momentum and potential consolidation.

Akhtar Faruqui FXStreet

Silver price (XAG/USD) extends its gains for the second successive session, trading around $99.10 per troy ounce during the Asian hours on Friday. The XAG/USD pair hit a fresh high of $99.39 amid persistent bullish bias, indicated by the technical analysis of the daily chart timeframe, as the price of the precious metal rises to near the upper boundary of the ascending channel pattern.

Silver price holds above the rising nine-day EMA, while the 50-day EMA continues to advance and underpins the medium-term trend. Trend strength is confirmed by the widening gap between the 9-day EMA and 50-day EMA, keeping bulls in control.

The 14-day Relative Strength Index (RSI) at 74.66 (overbought) flags stretched momentum that could precede consolidation. Overbought conditions could trigger a pause, but the uptrend remains intact while above the short-term average. A defended dip would keep the topside bias intact and open scope for extension above the upper ascending channel boundary around $99.80, followed by the psychological level of $100.00.

Should price pull back, initial demand could emerge near the nine-day EMA at $92.42. A daily close below the short-term average would risk a correction toward the lower boundary of the ascending channel around $82.00. Further declines would put downward pressure on the Silver price to navigate the region around the 50-day EMA at $73.14.

(The technical analysis of this story was written with the help of an AI tool.)

Silver FAQs

Why do people invest in Silver?

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.

Which factors influence Silver prices?

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.

How does industrial demand affect Silver 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.

How do Silver prices react to Gold’s moves?

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

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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