Silver Price Forecast: XAG/USD hits record highs near $66 on weak US data

Silver price refreshes all-time high near $66 as investors shift to safe-haven fleet.
The demand for safe-haven assets increases amid rising US economic concerns.
The US Unemployment Rate accelerates to 4.6% in November.

Sagar Dua FXStreet

Silver price (XAG/USD) posts a fresh all-time high near $66 during the Asian trading session on Wednesday. The white metal extends its bull run as weak United States (US) employment data, Retail Sales, and flash S&P Global Purchasing Managers’ Index (PMI) data raise economic concerns.

The US Nonfarm Payrolls (NFP) report showed on Tuesday that the Unemployment Rate rose to 4.6% in November, the highest level seen since September 2021. In the same period, the economy created 64K fresh jobs, higher than estimates of 50K, but after firing 105K payrolls in October.

Month-on-month Retail Sales remained flat in October, while it was expected to grow steadily by 0.1%. Meanwhile, preliminary S&P Global PMI landed at 53.0, sharply lower than 54.2 in November.

Escalating US economic jitters have raised demand for safe-haven assets, such as Silver.

The broader outlook of the Silver price has remained upbeat due to expectations that the Federal Reserve (Fed) will deliver more interest rate cuts in 2026 than one projected by officials in December’s policy meeting. According to the CME FedWatch tool, there is a 67.6% chance that the Fed will deliver at least two interest rate cuts next year.

Silver technical analysis

Silver price trades almost 3% higher around $66.00 during Asian trading hours. The 20-period Exponential Moving Average (EMA) rises at $63.28, with price holding above the average and keeping the short-term tone positive.

The 14-period Relative Strength Index (RSI) at 69.16 sits near the overbought threshold, signaling that momentum could cool before the next leg higher.

Bias remains firm while the market stays above the rising EMA, where pullbacks would be cushioned. A break below the 20-period EMA would turn the intraday bias down, making Silver fragile towards the psychological level of $60.00. While a persistent hold above it would preserve upside, and keep the odds of further upside towards $70.00

(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

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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