Silver Price Forecast: XAG/USD rally stalls, sellers eye $60.00
- Silver’s four-day rebound stalls as bearish structure remains intact.
- RSI flattens below 50, signaling sellers are regaining control.
- Break below $61.45 exposes $56.61 and $55.63 supports.
Silver price retreats by over 1% on Monday, even as the Greenback and US Treasury yields edge lower, with the white metal threatening to drop below $60 for the first time this week. At the time of writing, the XAG/USD trades at $61.80, after peaking at around $63.28 earlier during the day,
XAG/USD Price Forecast: Technical outlook
Overall, the XAG/USD is downwardly biased, as last week’s four-day rally stalled for several reasons. First, geopolitical risk premium is out of the picture, and second, a potential “death-cross” in the daily chart increases the likelihood of further losses.
Momentum is flatline after four days of bulls gathering traction. However, the Relative Strength Index (RSI) turned flat after aiming towards its 50-neutral level, pointing downwards, hinting that sellers are moving in.
If XAG/USD dives below the low of the day of $61.45, this clears the path to challenge last week’s low of $56.61, June’s 30 daily low. Beneath that price level lies the June 24 cycle low of $55.63, ahead of the November 13, 2025, daily high turned support at $54.39.
On the upside, if Silver clears the June 22 high of the day (HOD) at $67.17, this opens the path to challenge the 200-day Simple Moving Average (SMA) at $70.06. Upwards lies the 50-day SMA at $71.05.
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.
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
