Silver Price Forecast: XAG/USD rebounds toward $95.00 near record highs
- Silver price advances toward the record high of $95.89.
- XAG/USD remains above the rising nine-day EMA, highlighting firm near-term bias.
- The 14-day 14-day Relative Strength Index at 70.99 signals overbought conditions.
Silver price (XAG/USD) recovers losses from the previous two consecutive days, trading around $94.20 per troy ounce during the European hours on Thursday. The technical analysis of the daily chart timeframe suggests the price of the precious metal remains within an ascending channel pattern, suggesting a persistent bullish bias.
Silver price holds well above the rising nine-day Exponential Moving Average (EMA), underscoring firm near-term momentum. The short-term average’s positive slope keeps the bullish bias intact. The medium-term trend is reinforced by the ascending 50-day EMA, which acts as structural support. While the XAG/USD pair remains above the short- and medium-term averages, setbacks would be corrective.
On the upside, the Silver price could test the record high of $95.89, which was recorded on January 20, 2025, followed by the upper boundary of the ascending channel around $98.50.
The 14-day Relative Strength Index (RSI) at 70.99 is overbought and maintains a risk of consolidation, whereas a moderation would open room for trend extension, with scope for a pause or pullback toward the nine-day EMA at 90.36. A break beneath the short-term average would expose the lower boundary of the ascending channel around $81.10, followed by the 50-day EMA at 72.04.
(The technical analysis of this story was written with the help of an AI tool.)
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
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.
