Silver Price Forecast: XAG/USD records fresh highs above $94.00
- Silver price hit a fresh all-time high of $94.15 on Monday.
- The 14-day Relative Strength Index at 72.65 signals overbought conditions.
- XAG/USD stays above rising short- and medium-term averages, indicating bullish control.
Silver price (XAG/USD) gains ground after two days of losses, reached fresh record high of $94.15 during earlier hours. Currently, the Silver price is trading around $$93.70 per troy ounce during early European hours on Monday. The technical analysis of the daily chart timeframe suggests the price of the precious metal remains within an ascending channel pattern, indicating a sustained bullish bias.
The 14-day Relative Strength Index (RSI) at 72.65 is overbought, pointing to stretched momentum that could shift into consolidation. RSI stays above 70, confirming strong momentum yet warning of limited upside without pause.
The nine-day Exponential Moving Average (EMA) slopes higher and stands well above the 50-day EMA, confirming an entrenched uptrend. The strong separation between averages supports the bullish bias. Price action remains above short- and medium-term averages as both slopes rise, keeping bulls in control.
On the upside, the Silver price could test the upper boundary of the ascending channel around $96.80, followed by the psychological level of $97.00
The initial support lies at the nine-day EMA of $87.05; a break would encourage a pullback toward the lower ascending channel boundary around $79.10. A daily close below the channel would expose the 50-day base at $69.23.
(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.
