Silver Price Forecast: XAG/USD holds gains near $61 amid Russia-Ukraine ceasefire
- Silver price holds gains near $61.10 as US President Trump confirms Russia-Ukraine ceasefire.
- 10-year US Treasury Yields have come under pressure due to lower oil prices.
- Investors shift their focus to the US CPI data scheduled for Wednesday.
Silver price (XAG/USD) trades higher at around $61.10 in the Asian trade on Monday, holding onto Friday’s gains. The white metal reflects strength as United States (US) bond yields have come under pressure due to a decline in oil prices in the wake of Russia-Ukraine ceasefire, announced by President Donald Trump.
As of writing, the WTI Oil price is down 2% to near $89.00. 10-year US Treasury Yields remained lower to near 5.24% from its over two-decade high of 5.36% on Friday. US bond markets are closed on Monday due to Columbus Day.
Theoretically, the scenario of correction in US bond yields provides relief to non-yielding assets, such as Silver.
Over the weekend, US President Trump announced through a post on Truth Social that both Russia and Ukraine have agreed to an energy ceasefire, a temporary agreement in which both parties agree to stop attacking energy facilities. Ukraine had been excessively attacking Moscow’s energy infrastructure to curtail its funding.
“Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!” Trump wrote.
The Russia-Energy energy ceasefire provides some relief for global markets at a time when energy supplies have remained extremely tight due to Middle East tensions.
This came after US President Trump stated on Friday that he struck a deal with Russian President Vladimir Putin for Russia to supply diesel in stages.
Meanwhile, investors await the US Consumer Price Index (CPI) data for September, which will be released on Wednesday.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $61.02, keeping a bearish near-term bias as spot holds beneath the 20-day Exponential Moving Average (EMA) at $62.07. The metal has retreated from recent highs and now trades under this short-term trend gauge, suggesting rallies are likely to face selling interest while the Relative Strength Index (RSI) at 44 stays in neutral-to-soft territory, hinting at persistent downside pressure rather than oversold exhaustion.
On the topside, immediate resistance is located at the 20-day EMA around $62.07, and a daily close above this barrier would be needed to ease the current downside bias and open the way for a more sustained recovery. In the absence of nearby technical support levels from the provided indicators, the focus remains on how price reacts to this moving average, with failure to reclaim it likely to keep XAG/USD vulnerable to further downside probes toward prior price lows on the chart.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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
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.
